Cross-Market Manipulation Allegations: Economic Implications

June 25, 2022

By Yan Cao, Marlene Haas, and Greg Leonard¹

Cross-market manipulation surveillance recently has garnered an increasing share of the international regulatory public spotlight. Compared to matters in which focused conduct (e.g., spoofing) is contained within a single market, fewer matters related to cross-market manipulation have been publicly pursued. However, regulators around the world, including the U.S., are now highlighting their continued focus on this type of market abuse, which is perceived to be more difficult to detect. In a cross-market manipulation scheme, traders allegedly place orders or undertake other activity in one product on an exchange or other trading venue with the intent of artificially impacting the related product trading on a different exchange or through a different venue. These related products have prices that are related to or correlated with the economics of the first product, or they may be derivatives linked to the first product.

While it has long been debated what attributes of cross-market trading activity may constitute manipulation rather than hedging or other legitimate conduct, recent years have brought new court decisions and announcements by regulators. Still, this question remains far from answered. For example, the U.S. Federal Energy Regulatory Commission (FERC) alleged that Etracom LLC perpetuated a cross-market manipulation of “electricity prices in the California wholesale electric market.”^[1] The FERC alleged that Etracom submitted “uneconomic” virtual supply offers “at the New Melones intertie at the border of the [California Independent System Operator (CAISO)] wholesale electricity market in order to affect wholesale power prices and economically benefit ETRACOM’s Congestion Revenue Rights (CRRs) sourced at that location” during an approximately two-week period in May 2011.^[2] While CRRs do not trade within a wholly separate market, the FERC has referred to this case as a “cross-market manipulation” scheme based on the fact that Etracom engaged in “virtual transactions at the New Melones intertie not for any legitimate reason, such as arbitraging the difference between day-ahead and real-time prices, but rather with the intent to artificially lower the New Melones day-ahead LMP to benefit its CRR positions.”^[3] According to the FERC, Etracom lost over $42,000 on its virtual supply offers in May while earning more than 12 times that amount as a result of its congestion revenue rights positions during the two-week period. A similar case was brought by the FERC against Vitol Inc. in 2020, also in the CAISO market.^[4]

In Europe, concerns about cross-market manipulation schemes appear to be central to regulators. For example, in November 2021, the U.K.’s Financial Conduct Authority (FCA) discussed its concern that some electronic execution platforms (especially in the fixed income and rates markets) do not require a “direct connection to users’ trading systems,” and that therefore the users of these platforms have “been unable to establish [a connection]” to report their orders and trades.^[5] The FCA is “concerned that users of web-based platforms may not be able to monitor all their orders to detect potential market abuse.” The FCA further highlights that orders are “a critical component in effective monitoring for some types of actual or attempted market manipulation” including “cross venue . . . manipulation.”^[6] If they do not have the capability to capture all executed and unexecuted orders, firms “may fail to identify this activity.”^[7]

With the recent increased global cross-market surveillance efforts and the continued focus by regulatory agencies, enforcement actions of cross-market manipulation from previous years shed light on how future matters potentially can be evaluated. This article discusses two such actions and their economic implications: In the Matter of Michael D. Franko and In the Matter of Davis Ramsey.

In the Matter of: Michael D. Franko

In September 2018, the U.S. Commodity Futures Trading Commission (CFTC) settled charges against Victory Asset Inc. and Michael D. Franko for spoofing and cross-market manipulation in U.S. and U.K. markets. The CFTC imposed civil monetary penalties on Victory and Franko of $1.8 million and $500,000, respectively.^[8]During the period of the alleged manipulative conduct, Franko was employed by one of Victory’s predecessor entities.

According to the CFTC, the cross-market scheme involved “spoofing in one market to benefit a position in another market, where the price of the two markets is generally correlated, particularly in the short term.”^[9] The CFTC found that Franko placed a relatively small bid or offer with the intent to execute that order in one market (e.g., on a U.S. commodities exchange) and then, prior to the execution of the bona fide order, placed a larger order in a different market (e.g., on a U.K. commodities exchange) “with the intent to cancel that order before execution.”^[10] For example, the CFTC determined that Franko placed one or more non–bona fide orders in copper futures on the U.K.-based London Metal Exchange (LME) to benefit a genuine order that he had placed in copper futures on the U.S.-based Commodity Exchange (COMEX), a designated contract market that is part of the CME Group. In doing so, he was allegedly “taking advantage of the correlation in price between these markets.”^[11]

In its order, the CFTC provides an example of how “Franko’s Spoof Orders were designed to create or exacerbate order book imbalance in the Relevant Markets, for the benefit of his Genuine Orders.”^[12] For this example, the CFTC provides the date at issue (December 17, 2013) as well as information on price levels and quantities of orders, but does not provide the precise timestamps. An analysis of the COMEX and LME copper futures data on December 17, 2013, shows that there is one instance that matches significant aspects of the example trading pattern as identified by the CFTC.^[13] Figure 1 illustrates the pattern described for LME copper futures. Around 13:23:46 UTC, 100 contracts were placed on the LME at the second best bid of $7,277.25. According to the CFTC, shortly before placing the bid order for 100 contracts on the LME, Franko placed two sell orders of 11 contracts each on COMEX. The two sell orders were “iceberg orders that only showed to the market as one lot.”^[14] The two sell orders were fully and partially filled, respectively, while the bid order of 100 contracts was outstanding on the LME.

Approximately one second after placing his bid order on the LME, Franko cancelled it. He then placed a second buy order for 100 contracts “that was at a higher price than his previous Spoof Order, but, because of market movement, it was placed at the third best bid.”^[15] This is shown in Figure 1, at 13:23:51 UTC, when the red bar representing 100 contracts appears on the LME at the third best bid of $7,278.25. While this second order was active, “five more lots on Franko’s Second Genuine Order were filled” on COMEX. Then, approximately one second after placing it, he cancelled his second “Spoof Order.”^[16]

The concurrent market activity on COMEX is shown in Figure 2. In particular, the order book on COMEX shows an upward movement of one price level approximately concurrent to the upward movement on the LME. Figure 2 also shows executions that fit the trading pattern described by the CFTC.

In the Matter of Davis Ramsey

In September 2018, the CFTC imposed remedial sanctions against and accepted a settlement with Davis Ramsey for cross-market manipulation in binary contracts and related futures contracts.^[17]The CFTC imposed civil monetary penalties on Ramsey of $325,000.^[18]

According to the CFTC, the cross-market scheme involved taking a “position in one or more Binary Contracts [US 500 Binary Contracts] for which the outcome at expiration . . . was determined based on the price of certain futures contracts that were traded on either COMEX or CME.” ^[19]Ramsey would then “place trades on CME in the relevant futures contracts . . . with the intent and in a manner designed to impact the price of those futures contracts to achieve his further objective, which was to influence the settlement of the Binary Contracts in his favor.”^[20] The Binary Contracts traded on the Northern American Derivatives Exchange (Nadex), which is a source of liquidity and market wholly separate from the CME on which the related futures contracts traded.

The CFTC found that Ramsey traded Binary Contracts with certain futures as the underlying. While having an open position in Binary Contracts immediately prior to the expiration of the Binary Contracts, Ramsey traded in the underlying futures contracts. According to the CFTC, Ramsey “entered into these transactions with the intent to influence the Futures prices that would be used to calculate the relevant Binary Contract Expiration Value.”^[21]He placed “multiple small . . . orders at prices that would cause his Binary Contracts to expire in-the-money.”^[22] After the expiration of the Binary Contracts, he would close his futures position.

The CFTC found “at least one occasion during the Relevant Period” when Ramsey’s strategy caused “certain Futures contracts on CME to trade at an artificial price just prior to a Binary Contract Expiration for positions” that Ramsey held in his trading accounts with Nadex, which were wholly separate from his trading accounts with CME.^[23] The CFTC points to an example from May 10, 2017, when Ramsey bought Binary Contracts written on the CME S&P 500 E-mini futures. The payoff criterion for these Binary Contracts was 2391.95—that is, if the E-mini futures exceeded this price level, the Binary Contracts would have been in-the-money and therefore valuable for traders who purchased this contract. The payoff criterion is determined by Nadex based on the average price of the E-mini futures for the 25 trades leading up to 11:00 AM ET (disregarding the bottom and top five trades). According to the CFTC, because “the June S&P E-mini trades in 25 cent increments . . . , for the Binary Contract Expiration Value to be above 2391.95, of the [15] trades used to calculate the average, at least [13] . . . would have to be at a price of 2392 with the remaining two trades at a price of 2391.75.”^[24]

Between 10:57:48 AM ET and 10:57:53 AM ET, Ramsey bought a total of 70 Binary Contracts. Approximately two seconds later, at 10:59:44 AM ET, he started placing one-lot orders in the June S&P E-mini futures. Ramsey placed all of his orders at a price level of 2392.^[25]Figure 3 illustrates the pattern described for the S&P E-mini futures. During the period in which Ramsey was trading, the June S&P E-mini futures contract had traded between 2391.5 and 2391.75. In total, Ramsey placed and executed 82 separate one-lot buy orders. Figure 3 shows in more detail how the market moved at the time of Ramsey’s trading. In particular, the order book on CME shows an upward movement of one price level around the time when Ramsey started to place marketable buy orders. Figure 3 also shows executions that fit the trading pattern described by the CFTC.

According to the CFTC, as “a result of Ramsey’s CME trading, his Binary Contracts [on Nadex] did expire in the money.”^[26]The CFTC also found that the 25 trades that were used by Nadex to determine the expiration value of the Binary Contracts “included [18] trades at a price of 2392,” 16 of which were executed by Ramsey.^[27]The final expiration value of the Binary Contracts was 2391.967. Overall, the CFTC found that during the period when Ramsey engaged in this strategy, he made a profit of “at least $250,636.25” across his Nadex accounts.^[28]

Conclusion

Regulatory surveillance functions and capabilities are evolving to monitor for market abuse risks spanning multiple contracts and products across separate trading venues. While the landscape of cross-market manipulation prosecutions and enforcement actions is evolving, recent actions taken by courts and regulators signal the commitment to include cross-market manipulation law enforcement in the broader enforcement of general market abuse regulation. In the Franko and Ramsey matters, the traders employed similar trading strategies (entering of allegedly non–bona fide orders in one market to affect genuine orders in another) across multiple, highly correlated venues and instruments. Thus, these matters provide insights and guidance relevant for evaluating future cross-market manipulation enforcement investigations.

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About the Authors

[1] Greg Leonard, is a senior vice president at Cornerstone Research in London and Washington, D.C. Yan Cao is a vice president at Cornerstone Research in New York. Marlene Haas is a senior manager at Cornerstone Research in Washington, D.C. The views expressed in this article are solely those of the authors, who are responsible for the content, and do not necessarily represent the views of Cornerstone Research or any of its clients. The authors wish to thank Alex Hedgren, Anaïs Kreklewich, Chen Fan, Florence Zhang, Hayley Barton, Robert Harling, and Saniya Anand of Cornerstone Research for their valuable research and comments.

Yan Cao, vice president at Cornerstone Research in New York

Marlene Haas, a senior manager at Cornerstone Research in Washington, D.C.

References

^[1] Federal Energy Regulatory Commission v. Etracom LLC et al., Case Number 2:16-at-01011.
^[2]Federal Energy Regulatory Commission v. Etracom LLC et al., Case Number 2:16-at-01011, ¶ 4.
^[3]Federal Energy Regulatory Commission v. Etracom LLC et al., Case Number 2:16-at-01011, ¶ 52.
^[4]Federal Energy Regulatory Commission v. Vitol Inc. et al., Case Number 2:20-cv-00040.
^[5]“Newsletter on Market Conduct and Transaction Reporting Issues,” Market Watch 68, November 2021, https://www.fca.org.uk/publications/newsletters/market-watch-68 (“Market Watch 68”).
^[6]Market Watch 68.
^[7] Market Watch 68.
^[8] “CFTC Orders Futures Trader and Trading Firm to Pay $2.3 Million in Penalties for Cross-Market and Single-Market Spoofing and Manipulative Scheme,” CFTC, September 19, 2018, https://www.cftc.gov/PressRoom/PressReleases/7796-18 (“CFTC Victory/Franko Press Release”).
^[9]CFTC Victory/Franko Press Release.
^[10] CFTC Victory/Franko Press Release.
^[11] CFTC Victory/Franko Press Release.
^[12] Order Instituting Proceedings Pursuant to Section 6(c) and (d) of the Commodity Exchange Act, Making Findings and Imposing Remedial Sanctions, In the Matter of: Michael D. Franko, CFTC Docket No.: 18-35, September 19, 2018 (“CFTC Order Franko”).
^[13] See CFTC Order Franko, p. 3. To identify instances that match the example trading pattern within the relevant period as identified by the CFTC, COMEX and LME data as provided by Refinitiv were screened for the order submission pattern described in the CFTC’s Order.
^[14] See CFTC Order Franko, p. 3.
^[15] See CFTC Order Franko, p. 3.
^[16] See CFTC Order Franko, p. 3.
^[17] Order Instituting Proceedings Pursuant to Section 6(c) and (d) of the Commodity Exchange Act, Making Findings and Imposing Remedial Sanctions, In the Matter of: Davis Ramsey, CFTC Docket No.: 18-49, September 27, 2018 (“CFTC Order Ramsey”).
^[18] See CFTC Order Ramsey, p. 9.
^[19] See CFTC Order Ramsey, p. 2.
^[20] See CFTC Order Ramsey, p. 2.
^[21]See CFTC Order Ramsey, p. 4.
^[22] See CFTC Order Ramsey, p. 4.
^[23] See CFTC Order Ramsey, p. 4.
^[24] See CFTC Order Ramsey, p. 4.
^[25]See CFTC Order Ramsey, pp. 4–5.
^[26] See CFTC Order Ramsey, p. 5.
^[27]See CFTC Order Ramsey, p. 5.
^[28] See CFTC Order Ramsey, p. 6.

How Can a Dedicated Contract Carriage Assist You?

June 25, 2022

Domestic and international freight services is a large, complex, and regulated industry. The industry moves 11 billion tons annually, accounting for roughly 80% of global trade.

To compete in such a complex global economy, you must seek ways to improve efficiency. And doing so without sacrificing value in all aspects of your business.

Dedicated Contract Carriage services are one of those immediate changes that can help you improve fleet operation at a low cost. They allow you to outsource fleet management to experts while focusing on your core competencies.

Read on to find out how a dedicated contract carriage can help your freight business.

What is a Dedicated Contract Carriage?

Dedicated Contract Carriage (DCC) allows shippers to use trucks for a while and pay a flat rate per truck based on their needs. That is, they are a third-party service that allows a company to use their trucks and drivers on a contract basis.

The contract is a legal agreement between the freight carrier and the shipper. It is a written record that the carrier agrees to transport the shipper’s goods for a fixed fee. It will also include details of the goods and the dates and times agreed upon by both parties.

The contract usually covers air and sea freight. In most cases, the terms may vary depending on the circumstances. Most standard contracts also include liabilities such as:

Carrier agrees to take reasonable care of the cargo
Shipper agrees to describe every cargo
Shipper compensation for damaged, lost, or late cargo

A dedicated contract carriage benefits both parties. It is beneficial for businesses that need to supplement private fleet management services.

How Dedicated Contract Carriages Help Business Owners

The following are some essential benefits business owners may enjoy when they use DCCs.

1. Increased Capacity

The trucking industry is a populated market. As a result, shippers must ensure they have a working transportation strategy to deliver their products.

Whether you self-operate or buy trucking services, market capacity is limited. This is due to the tight labor market and economic growth.

With your trucks, you are only limited to a specific carriage capacity. As you scale your business, you have to buy more trucks which can be expensive.

But when you use a DCC, you can increase your capacity without raising the cost. That is the cost of buying and maintaining extra equipment.

Dedicated contract carriage provides you with a fleet. It allows you to enjoy the benefits of having a fleet without the operational headaches. The bill is presented monthly for all miles the trucks move.

You get the trucking solution as long as you pay for every mile the truck runs (including empty miles). This is usually subject to a weekly or monthly payment. You can even embellish your company name on the trailer’s side.

2. Driver Recruitment

Finding and retaining truck drivers in today’s labor market can be difficult. Many factors go into the selection process that makes it tiring and costly. Studies show that hiring a truck driver can cost between $2,000 and $15,000.

As a business owner, you would want to find drivers that have experience. Also, you need drivers that do not have too many infractions on their records. This is important as it will impact the fleet operation and running costs.

With DCC, you don’t need to invest in recruitment, hiring, and retaining drivers.

Instead, you can select from a pool of drivers in your DCC company who will work with you.

3. Driver Training

Extensive customer service and fleet optimization demand frequent and proper training for drivers. Since every business is unique, the content of this training has to be customized.

Customized training allows the drivers to get the needed skills to meet the needs of most of the customers they meet on the job. Yet, such custom training is usually expensive. The tutor has to design the lessons to suit individual companies.

With a dedicated contract carriage partner, you can have trained drivers for your business. Training can cover specific and vital areas like material handling, warehouse fulfillment, etc.

Some of the best carriers will offer their drivers extensive training on each customer’s needs. Usually, this comes at little or no cost.

4. Enhanced Efficiency

Another reason to use a dedicated contract carriage company is improved efficiency. Most companies do this by offering logistics analysis that can generate insights.

These companies can provide a high-level review of their clients’ shipments, detailed data, and specific insights to assist customers in fleet optimization.

With an array of insights, your company can develop better logistics strategies to help serve your customers better. You will also have better freight management as an add-on benefit.

Also, the insights help you see whether the company is helping you achieve your targets.

5. Extra Protection

Most expedited freight systems have fleet risk management plans. These plans help them prevent damage or lost cargo incidents. Unexpected events, such as extreme weather conditions, could damage or destroy the cargo.

A signed Dedicated Contract Carriage provides relief and peace of mind. It clarifies any factual misunderstandings and protects your liability. The contract clearly states who is liable for certain cargo damages. The agreement also has the potential compensation if such events occur.

You will have a significant financial investment in your cargo as a business owner. As a result, you should consider using a dedicated contract carriage to protect your goods.

6. Extra Profits

Furthermore, if you select the right DCC to manage your fleet, you may be able to get more profits.

You will have the ability to fill a part of your “empty” miles by sharing their backhaul loads’ profits.

In other words, the company will fill a large part of your empty miles and pay you for freight for other shippers. Many have access to cargo from in-house managed transportation services and external brokers.

DCCs achieve this by managing everything from the same IT platform. That way, they can ensure no empty trucks pass by.

Final Thoughts

Dedicated Contract Carriage is beneficial for most businesses. However, it only works if you can keep the trucks under contract for you busy.

Dedicated Contract Carriage providers will want a guaranteed amount of revenue per week. This helps them meet your operational needs and retain your drivers.

The key to making Dedicated Contract Carriage work for you is determining how many trucks you can consistently keep busy.

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4 Reasons to Use an International Calling App

June 25, 2022

With the rising cost of living, your phone bill can quickly hit the ceiling. It can deny you the chance to talk to your loved ones and maintain business relations at home and abroad. As the global oil price rises by 70%, the cost of living may continue to rise.

But we must keep in touch with business partners, family, and loved ones. Tough economic times should not undermine your business operations or family relations.

That’s where international calling apps come in. They offer cheap premium-quality international calls. You can now keep in contact with your family and business associates without digging deeper into your pockets. There is no need to put up with expensive roaming and additional fees to contact people back home.

But, they offer more benefits. Here are 4 reasons to use an international calling app.

1. Flexibility With 24/7 Connectivity

International calling apps allow you to call regular phones, smartphones, and landlines. As a result, it gives you flexibility regardless of the connectivity of the call receiver. You can contact anyone whether they have an internet connection or not.

That gives you the ability to call South America or the Caribbean region without hassle. So, you can call Cuba without worrying about the receiver’s device or internet connection. You’ll only need the to know:

The exit code of your host country,
Cuba’s code (53),
Cuba’s area code you’re dialing, and
Receiver’s number.

So, if you wish to place direct orders for top-quality cigars in the world from Cuba, an international calling app covers you. Therefore, the app is functional and flexible if you frequent visits to other countries for personal or official work.

Therefore, you can connect to your associate or loved one regardless of the telecom service they are using. Whether through a landline, regular phone, or smartphone (android or iOS), you can place exceptional premium-quality international calls.

2. Save on Your Phone Bill

As stated earlier, prices of everything are on the rise. The global inflation rate is expected to hit 6.7% in June 2022. Factoring in the Russia-Ukraine crisis and the possible similar standoff between China and Taiwan, we are still in for a rough ride.

Your phone bill can increase if you’re running a small business while on the move. You may spend significant time contacting your partners, prospects, and repeat customers to expand your sales. It can stretch the cost of your business communication, especially if you’re using a mobile phone. Your overall traveling costs will also increase incredibly.

You need to practice discretionary spending like anyone else to survive the inflation. So, your phone bill should also be modest to help save as much as possible. International calling apps allow you to save on your phone bill.

Traditional international calling can even include expensive roaming charges. As a result, your phone bill can hit the ceiling. However, calling apps cost less because they use the internet, voice-over-internet protocol to route calls.

So, operational costs are significantly reduced, allowing the providers to extend the same to users like you. Therefore, you will enjoy cheap international call rates with premium quality. It can also reduce your overall cost of traveling abroad because your phone bill is modest.

3. Easy to Use

Most international calling apps are user-friendly and intuitive. You’ll realize how easy international calling can be when you use them. First, you can use it on your smartphone, tablet, or computer. That means you can keep in touch with your loved ones and business partners.

Calling apps like Talk360, Google Voice, and PopTox are just as simple as regular phones. Besides reducing the costs of international calls, they are also convenient. You do not need to look for calling cards at convenience stores. You can buy credit online and dial your contact as you would on a regular mobile network.

4. Advanced Features Are Available

You can also enjoy advanced features of international calling apps like virtual numbers. Virtual numbers allow you to call your target country with no hardware setups. In fact, it comes in handy if you are expanding your business operations and don’t wish to worry about costs.

Virtual numbers make reaching new customers in other countries and continents easy. Take it as a way of scaling your communication as your business goes regional or international. Because the virtual numbers look like local numbers, your clients can call you toll-free or at standard charges.

Other advantages of virtual numbers that international calling apps can offer include:

It helps you build a worldwide presence faster for small businesses.
It provides extra features like interactive voice response, call recording, etc.
Complement remote work and collaboration.

It is vital to understand how international calling apps work to provide all these benefits.

How International Calling Apps Work

International calling apps route calls over the internet through the voice-the-internet protocol (VoIP). But that only allows you to connect to another person with an internet connection and a smartphone, tablet, or computer.

That’s how WhatsApp or FaceTime works. Your voice and video will be transferred through the internet to another person at the end. So, the receiver must have a reliable internet connection and a similar app installed.

Other international calling apps like Talk360 take VoIP to another level. They connect to the Public Switched Telephone Network (PSTN) through gateways. PSTNs and their associated gateways are moving to the cloud. With the gateway, your calls can be routed even to landlines and regular phones without an internet connection.

So, the receiver does not need to install the international calling app to receive your calls. That makes it easier to connect with your partners in even rural areas at affordable calling rates.

Final Thoughts

Technology has incredible ways of streamlining our operations and reducing associated costs. And that’s what the international calling app presents to you as global inflation rises. Whether you are connecting with families, friends, or business partners, you can now save on the go.

The calling apps offer premium-quality international calls at affordable rates. But it goes beyond costs. They are flexible and allow you to call even if the receiver has no internet connection. Also, they are easy to use and help you scale your communication if you’re a small business going international.

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Review Your Investments Regularly to Ensure They’re Still Aligned with Your Goals

June 25, 2022

If you’re comfortable managing your portfolio, take an active approach to your investments. The value of investments can fall and rise – there’s no risk without reward in the financial market. Checking your portfolio regularly is crucial because it can bring asset allocation in line. With time, asset allocation can change. It all depends on the way the investments perform. Determining what combination of assets to hold onto in your portfolio is a personal one. Figure out what works best for you by taking into account the time horizon and your ability to tolerate risk.

Investing is a long-term pursuit, so monitor your investments systematically. Watch how they’re performing and adjust them accordingly. Your portfolio can include any mix of financial assets, like stocks, mutual funds, bonds, ETFs, futures, and currencies. Keeping an eye on all these assets can be challenging. You need to know what’s going on at all times with your investments, not just once in a year when you have to report your gains or losses. It involves serious mental gymnastics. Use software or an app to manage the process.

Do Your Investments Still Match Your Financial Goals?

For most people, the main goal is a financially secure retirement. You should have enough to live a comfortable lifestyle after leaving the workforce. Make your money work for you. More exactly, earn a rate of return that surpasses inflation and allows your principal investment to grow throughout the years. Financial goals don’t have to be set in stone. You can revise them throughout your life. Some examples include a new home and regular travel. Life events and changing priorities will affect your financial strategy.

You have a clear idea of what you want out of your financial life. Your financial goals align with your values and personal objectives. The question now is: Do your investments still match your financial goals? You’ve worked hard to make sure you have enough money at the end of the day. And you’ve invested this money in the most reliable ways to build wealth over time. But does your investment strategy align with what matters the most? Maybe not. Eliminate distractions and focus on the things that actually work.

A Mobile App Offers Real-Time Information on All Your Investments – All in One Place

These days, there are several options available, some of which are hosted online under the software as a service (SaaS) model, while others are programs you can install on your computer or smartphone. With an investment app, you can get information on the spot on the status of your portfolio. You can check your investments’ performance once a day or more. The best investment tracking app is the one that works for you. The best app in the world is useless if it’s troublesome. Some software have a higher learning curve.

A good example of a highly functional app is Delta Investment Tracker. It’s a multi-asset investment tracking app that makes it possible to manage several portfolios and monitor the live performance with various tools and charts. The app provides a clear picture of your overall financial situation. It comes with a level of simplicity that you will appreciate. If you’d like to find out more about Delta Investment Tracker, please visit www.delta.app. The app will get you where you want to be in the future.

Portfolio management is no longer complicated when you use a software application. You can sync and download financial information in an instant. You have up-to-the-minute information, so you always know where you stand. Seeing your balance increase over time can be quite motivating. If you’re investing on your own (or have a robot advisor), check your investment portfolio once a month to make sure there are no dramatic changes. Looking every day makes you more susceptible to rash decision-making. Also, it’s bad for your mental health.

How To Make Investment Choices That Enhance Your Financial Wellbeing

Your investments should be suitable for what you’re trying to accomplish. It takes just a couple of seconds to open your app and reach a personalized dashboard that tells you exactly how your investments are doing. Review the portfolio composition regularly to make sure it remains on track. You can compare your returns with those of similar investments in a benchmark index. If you’re paying too much in ways, don’t worry as there are other lower-cost alternatives. You should meet your goals without having to borrow from friends or avail loans.

After some years, you may come to the conclusion that your portfolio hasn’t taken you anywhere. If your investments aren’t helping you reach your goals, make some changes. Investing requires a methodical and disciplined approach. Achieving your financial goals requires you to:

Ask yourself why you’re investing in the first place. Write down your goals so that you can narrow your focus. The clearer you get, the stronger those goals become, and the more likely you are to achieve them. When your investments are linked to your goals, you become a focused investor.
Identify the right kind of strategy to get you to your goals. The great thing about investment strategies is that they’re flexible. If you’ve chosen one that doesn’t suit your risk tolerance, you can make the necessary changes. However, be careful. Take the time to understand the characteristics of each investing strategy before settling on one.
Put a date to each financial goal. Think about the time frames in which you want to accomplish your goals. Each financial goal should be given a realistic time frame. Not all goals can or should be accomplished in the same time frame. Keep out the less important ones for the time being. You can address those financial goals later.
Determine how much you need to invest. Determine what amount would be appropriate for your level of income. It shouldn’t be a blind exercise. Understand the future value of the amount required to satisfy your goals. Don’t neglect the power of inflation on wealth.
Figure out your risk tolerance. Establish the amount of loss you’re willing to tolerate while making an investment decision. Don’t allow yourself to be frightened and take a too conservative approach. Risk and reward are closely linked.

The urge to do something can be very powerful at times. Even if your investments aren’t performing in line with your expectations, don’t be drawn into short-term actions.

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5 Tips For Diversifying Your Finances

June 24, 2022

Finances aren’t as easy as people make them look, and sometimes it can be particularly tough to manage them. When facing an emergency that you don’t have the funds for, you may look at outside financing from payday loans or overdrafts. These can really help see you through a tricky situation and get you through the other side. When it comes to finances, there are lots of things to consider, and one of them is diversification. Diversifying your finances is essentially splitting them up into lots of different pots to maximise your assets. So, if you’re wanting to diversify your finances, keep reading for 5 top tips!

1. Invest In Real Estate

If you really want to diversify your finances, be sure to invest in real estate. Although real estate is normally a large upfront investment, it can have one of the biggest payoffs. You’ll be able to have a steady stream of passive income by doing so and it can really help you when things like inflation hit. As inflation increases, so will the price of your investments, meaning your cash flow will be in line with the cost of living no matter what. You may even find that some of your real estate expenses are tax-deductible too! Real estate is one of the few investments that will benefit you in the long term and allows you to easily build wealth. However, you need to ensure that you can either pay for the real estate outright or easily manage the mortgage payments each month. Otherwise, you’ll end up worse off than you were before. Real estate is a great way to diversify your wealth and it will help it grow exponentially.

2. Go Global

Typically, when you invest, you might limit yourself to the market of your own country. However, there are lots of financial investments that can be made globally, and they may even be better than the ones at home. By investing in global markets, you’ll not only diversify your finances, but you’ll also enhance your return on investment. Global markets are extremely fast-paced too, so you’ll need to learn a lot about them before investing. Starting with something small like an exchange-traded fund can allow you to dip your toes into the big wide world and begin to understand how it works. Some global markets are worth investing in more than others. For example, the Chinese market is growing very fast, making it ideal if you want to diversify your finances and expand your finances.

3. Understand What Impacts The Market

Each market you invest in is going to be different, so if you’re diversifying your finances through stocks and shares, then you need to understand how the market can be affected. Everything that happens to the stock market will impact your investments, so you need to be aware of all the risks that come along with it. For instance, during the pandemic, investing in coffee shops might not have been a great idea as they all had to close, and some even went under. But, if you had invested in face coverings during that time, your investment would have been smart and safe. External factors such as inflation and interest rates can massively impact your chosen market, so make sure you do your research before investing.

4. Build A Range Of Assets

Diversifying your finances is all about having a range of assets and investments. For instance, you could invest in some stocks, own a house or two to get you on the real estate market, and you could have more than one pricy car. Diversifying your finances will also help you increase your net worth, and it will also show you how far you’ve come. You want to assess your finances regularly and ensure that your assets are in line with your current situation. You may find that actually, the stocks you hold would be better off being sold in an unstable market or perhaps one of your cars has increased in value due to its sudden scarcity. Holding a range of assets will allow you to spread the risk of your investments, so if one of them loses value, you’ve got the others to fall back on. Different assets are also impacted by different things, so if the interest rate drops and your bonds decrease in value, you’ll still have a steady stream of income coming from your real estate.

5. Invest Small And Often

Although it can be tempting, don’t put all your money into one company. Anything could happen at any time, causing them to go bust and leave you empty-handed. Instead, try investing in lots of different companies and shares instead. This way you’ll have something to help keep you afloat should one of your investments not work out. You’ll also find that your finances are a lot more diverse if you spread your investments out over different markets and assets too. Giving yourself room to breathe if things don’t go as planned will ensure that you always have some form of income behind you.

Diversifying your finances doesn’t have to be hard. In fact, it’s actually quite easy when it comes down to it. One thing to be aware of is not to over-diversify them as sometimes it can do more harm than good. You don’t want to restrict yourself and become tied up in too many investments, so make sure that you only invest in worthwhile markets. If you’re wanting to diversify your finances, try incorporating these 5 tips and you’ll soon see the difference they can make!

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Dripcoin: How Effective Is This Digital Assets Broker?

June 24, 2022

If the value of digital currencies continues to rise or fall, they will continue to be a big issue in the media. The unpredictability of their pricing draws barters from all over the world, and it seems that everyone wants to be a part of the continuing technological upheaval within the financial industry.

Contrary to this, cyber currency dealing is a high-risk pastime that should only be pursued by those who meet specific qualifications. You need more than just education and a competent interchanging platform to succeed. What we need is a reliable system for interchanging digital financial products, and that’s where Dripcoin comes into play.

Accounts

There is only one account type on the platform, so all customers have equal access to the brand’s existing services. Getting started with Dripcoin DN is a breeze thanks to the company’s efforts to make the procedure as straightforward as possible while ensuring the highest level of security.

There are three steps to becoming a fully registered member: Creating a profile, submitting your personal information, and completing regular verification procedures.

After that, you will be able to fund your account and start bartering as soon as possible. Dripcoin allows users to fund their accounts via credit cards, debit cards, wire transfers, and virtual capital electronic wallets.

If you follow these three easy steps, you’ll be well on your way to completing the deposit process. Keep in mind that the withdrawal process works the same way as the deposit one does.

DripCoin Software

This is the place to come to if you seek a reliable platform to barter digital assets. The next-generation platform that the company uses offers additional capabilities such as quick execution, monitoring for numerous transactions at once, and access for customers to technical help.

Clients will be well-equipped to deal with the e-capital world because of Dripcoin’s user-friendly software, which is available across a vast number of platforms. If you have the correct tools and methods, you may be able to take advantage of the obstacles that lie ahead.

Customer Care

Dripcoin is dedicated to the guarantee that customer care specialists will be available to assist customers 24 hours a day, seven days a week, as a result of the 24-hour daily e-finance buying and selling schedule. There are multiple access points to an assistant, and the website of the company features a frequently asked questions area for inquiries of a more general kind.

When it comes to providing a strategy that is focused on the needs of its customers, Dripcoin does not make any concessions. When it comes to the expansion strategy for the business, the customer comes first every time. This strategy makes it possible to provide more effective transacting services.

Bottom Line

Dripcoin is a digital coin dealer that provides clients access to various instruments, all of which may be interchanged using a unified bartering platform and a standard dealing account. Interchanging financial instruments is now available to the general public through a web-based buying and selling platform that is not only cutting-edge but also welcoming to dealers of all skill levels.

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Invoice vs. Quote: What Is the Difference?

June 24, 2022

There are many tools in business that help you ensure you get paid on time for your work. As an entrepreneur, you should clearly understand how they all work. In this article, we will break down the difference between a quote and an invoice. At first glance, they may look the same, but they actually have different meanings and uses.

What Is a Quote?

A quote is a special form that contains detailed information on products and services and their costs. In it, companies describe the items they can provide at the moment. Such papers can be verbal, but formal documents are better supplied in writing using Invoice Maker by Saldo Apps. Such a file is issued at customers’ request and is a kind of proposal. Externally, a quote template resembles a commercial invoice, but in essence, it is not it.

What is the purpose of a quote? Such a paper is needed so that a client who has requested it could get acquainted with the items a business offers and understand whether such terms and conditions are suitable for them. Of course, they can get such information from different companies and then make a final choice in favor of one of them. That is, the provision of this type of document does not imply that a customer agrees to pay for the goods described.

How to Provide a Quote?

What does getting a quote mean? It means that your potential customers want to get preliminary information about the products and services they are interested in, their cost, available quantity, delivery terms, the period during which your offer is valid, and many other things. This document is usually provided at clients’ request before an order is placed and work on it begins.

The best practices for creating quotes also include providing information about the price of similar products, extra costs in case any work takes longer than planned, and other terms and conditions you adhere to. Never include products or services that you cannot provide. Try to make quotes as detailed as possible so there are no misunderstandings during the process.

What Is an Invoice?

The quotes meaning is very different from an invoice in nature. The fact is that the latter is provided to clients after the work on an order is finished. Their content can either repeat quotes or contain additional information since some positions might be changed during the work, as agreed with clients.

What are invoices used for? They record the fact of order fulfillment and demand payment for it, as well as protect businesses from dishonest customers. An invoice contains an itemized list of all products and services provided, their final quantity, cost, amount to be paid, the deadline for money transfer, contacts of contractor and recipient, and payment methods.

How to Provide an Invoice?

According to best practices for creating invoices, you need to provide such documents right after the work is completed. The sooner you do it, the quicker a client pays. While you can create them by hand, it is best to use modern software like SaldoInvoice. With it, you can write out bills from any device literally on the go. Fill out a template in advance or do it right on the spot and email it to the customer or provide a link. Don’t forget to accompany your file with a polite letter reminding recipients of your payment terms and thanking them for their cooperation.

Quotes and invoices are important files in your paperwork. They help streamline the workflow, build strong customer relationships, and ensure both parties agree to the terms. Apply each such form correctly and at the right time.

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How to Start a Winery Business

June 24, 2022

Imagine sipping on a glass of your favorite wine while enjoying the sunset over your own vineyard. That sounds like a heavenly scenario, doesn’t it? It’s one side of the coin of owning a vineyard. The other side would be the fact that growing a successful winery is a time-consuming and labor-intensive task.

However, challenging doesn’t equal impossible. Besides, starting any kind of business has never been a cakewalk. To that end, setting up a winery requires elaborate planning and deep knowledge of the industry. In this opening guide for a winery business, we’ll do our best to provide the fundamentals of starting a winery. Stay tuned.

Step 1: Learn More About Wine Making Business

Delve deep into the ‘winey’ topic and do some research on the process of making your own wine. Educate yourself on this issue nonstop. This will aid you in determining where you stand — and shaping up your idea about the type of winery it would be viable for you to have. If you gain a solid understanding of the issue, you’ll have straightforward answers to these important questions:

How much does it cost to start a wine business?
Will you engage in growing your grapes or opt for outsourcing?
Will you focus on winemaking and hosting events while offering the guests your fantastic wine?
Will you skip the production and concentrate on learning how to open a wine shop?
What’s the quantity of wine you’re about to produce?
How to start a winery without a vineyard?

Step 2: Create a Business Plan

When shaping your wine business ideas up into a comprehensive plan, consider such aspects as the niche you want to dominate, your target market evaluation, your financial prospects, and an in-depth analysis of your competitors. The latter element is exceptionally important at this stage, for it will help you keep tabs on the most successful strategies and further use them to your utmost advantage. Never neglect this step and make sure it is crowned with a solid step-by-step strategy document in the long run.

Step 3: Work on Investment & Marketing

Prior to getting the business going, plan your budget thoroughly. Buying a vineyard and operating a winery takes a lot of money. Even if you already have your grapes-friendly land, the cost of the enterprise comes down to about $40,000 per acre. Here are the main aspects you should take into consideration when learning how to make your own winery in the financial sense:

land and equipment;
winemaking-related specificities;
office and tasting space;
employee salaries;
insurance;
investment in promotion.

Although you will have to pour money into your operation nonstop, the most sufficient money flows will be needed during the first few years of your enterprise. Therefore, adjust your financial plan accordingly.

Step 4: Sort out Legal Issues

That’s where everything gets particularly complicated. The niche you’ve picked is overwhelmingly regulated in the US. Therefore, the number of documents you’ll have to deal with on your way to your dream business is going to be almost too shocking (yet bearable). You’ll need to start by applying for and getting a permit to operate a winery business.

After that, registering your company with the FDA will be required. This will ensure that your operation is fully legal in terms of the local legislation. To crown it all, your brand will need to receive approval from the Alcohol and Tobacco Tax and Trade Bureau. With that said, to preserve peace of mind and save your time along the way, we recommend that you turn to a professional attorney for assistance.

Step 5: Make Winery Equipment List Well in Advance

Transforming grapes into wine requires specialized equipment (read as expensive equipment). Here’s what you’ll need to purchase to run a winery like a pro:

top-notch winery POS system, e.g., ORTY;
dedicated farming equipment;
pumps for wine production;
bottling machines;
corking, packaging systems, and temperature monitoring systems.

To decide on the required list of equipment in your case, plan well in advance the volumes of wine you want to produce. Don’t forget to evaluate the capacity of your storage spaces. Once you plan that out, start looking for the needed systems and devices.

How to Run a Winery Successfully?

Cutting to the chase, running a winery like a pro long-term is a multi-dimensional process that requires you to be involved in a slew of operations. Finding and using a high-quality POS system like the one offered by ORTY is paramount in this respect.

What does POS stand for in the retail and winery business? The answer is relatively easy. It’s a point-of-sale system that forms an all-in-one center for dealing with all aspects of your business, including production, marketing, distribution, and transaction processing. If you want to be a successful vineyard owner, you’re going to need reliable winery management software.

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Ultimate Guide to Financial Literacy

June 24, 2022

Financial literacy does not mean that you have to fully understand all the complex processes of the market and skillfully invest in assets. This term refers to general knowledge and habits that give you a clear understanding of how to manage money wisely, where to save, and when you can afford to spend. Let’s take a closer look at the main components of financial literacy.

Definition of Financial Literacy

Many people get finance knowledge not at specialized training courses but from personal experience. You have to cope with a lack of money, pay bills, create small savings, learn to adapt to a changing situation, and much more. So, classic financial literacy meaning implies a set of knowledge, skills, and habits that help you cope with all these tasks.

What is money management? This term describes a complex of various processes that are related to finance. It usually includes budgeting, spending, saving, accounting, investing, etc. It can find application in the lives of individuals, investors, households, and large companies. Each level has its characteristics, but they all lie in the skillful money handling and awareness of the consequences of your actions.

Understanding how to become financially literate lies not only in learning the basics of budgeting and saving but also in learning how to put them into practice. Also, you should be ready to stop yourself from impulsive purchases, realizing that you need to achieve larger goals. Apart from that, you also need to understand the importance of having an emergency fund and creating retirement savings.

How to Improve Your Finances?

Proper cash flow management is essential because it is needed literally every day. Learning financial literacy allows you to allocate money so that you don’t live at your limits.

Money in the bank

Your bank account and debit card are your starting points for mastering the basics. Synchronize them with any budgeting app and connect various subscriptions and recurring transactions to make payments for the services you need on time. All information about the balance and flows is in front of your eyes. You can track receipts and purchases and adjust habits and budgets depending on your current goals. The best option is to open two accounts to which you can distribute finances according to your needs. The next step is budgeting.

Budgeting process

Understanding how to make a budget plan for yourself or your family is the next “brick” in your financial foundation. Thanks to it, you can avoid extreme financial situations, live in peace, and plan your future. Accounting for income and expenses, as well as their adjustment, is necessary for:

identifying your strengths and weaknesses;
cutting costs;
searching for additional sources of income;
creating emergency funds;
development of plans to get out of the debt pit;
categorization of needs and their gradual satisfaction.

Although budgeting for a single person or family is not difficult, you can turn to professionals for personal financial advice. They will conduct an expert assessment of your condition and, depending on your goals, help you create a budget plan.

Basics of Personal Finance

What are the basics of finance? There are a few key money management and budgeting tips that work in any situation:

Track all income and expenses. You can do it manually, but it is much easier and more convenient with the help of specialized services like Saldo Finance.
Identify your needs (vital and fixed expenses) and wishes (costs you can do without).
Summarize. Monitor your cash flow for two to three months and then evaluate it. This period is enough to identify unnecessary expenses and find ways to save.
Build savings. Set aside a certain amount right after receiving a salary. Once it becomes a habit, find ways to turn that money into dividends.
Create a budget. Based on the previous points, you should form a plan and stick to it daily.

Having mastered personal literacy, you will be able to move to a higher level and effectively interact with banks and other financial institutions. Knowing the main monetary processes and instruments allow you to set realistic goals and confidently go towards their achievement.

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Comprehensive Sellers Disclosure in Michigan

June 24, 2022

The Michigan real estate market has been in a frenzy. While the MLS listings are limited, the demand for houses has grown by leaps and bounds. Undisputedly, Michigan has become a sellers’ market. Sellers could make use of this trend most for their benefit and save thousands of dollars. Increasing numbers of owners are going the For Sale By Owner (FSBO) way. While FSBO sellers pay a flat fee to get an MLS listing, there are other aspects that they have to consider before listing their home, since there is no full-service real estate agent to help them with the documentation.

In Michigan, it is necessary to submit a Seller Disclosure Statement before the closing of a deal. Its submission is obligatory under The Seller Disclosure Act of 1993. Sellers disclosure Michigan or Michigan Seller’s Disclosure Statement (SDS) is a list of conditions in the property which could affect the house sale negatively. It is a disclosure of the physical, civic and environmental issues with the property. The homeowners must pay attention to this piece of document and submit it as soon as possible before the closing of the deal to protect themselves from further litigations from the buyers.

A. It is a must to prepare sellers’ disclosure Michigan document, here’s why

1. Immunity against buyer suits post-sale

If the sellers put everything in writing about the condition of the property, as known to them it protects them against if buyers raise concerns about certain factors in the property and then sue the seller. The sale becomes stress-free and profitable for both parties if there is 100% transparency about the property and its history.

2. Trust building and credibility

Most real estate transactions are based on mutual trust and goodwill. Hence, it is necessary to build credibility from the beginning itself to make sure that the deal closes smoothly and that it is a win-win situation for both.

An SDS will give complete and correct information about the property which will help in staging, pricing, and closing.

B. Contents of the Seller Disclosure Agreement

1. Property-related concerns

Michigan has a strict and detailed SDS which contains a special section for property-related concerns which are to be addressed honestly as per the knowledge of the seller. In this section, it is important to declare if there are any leakages, seepages, issues with the heating, any concerns related to the basement, or any incident of termites. The list goes on as it asks sellers to highlight the basic issues related to the property and sellers are required to fill in information about safety warranties that are about to expire.

2. Environmental hazards

The subsection in part one of the Sellers Disclosure Act is devoted to the declaration concerning environmental hazards like floods and exposure of the house to lead-based paint, formaldehyde, and radon gas, among others. Michigan Seller Disclosure Form has been given a separate section to inform about the lead paint hazard and it applies to a property constructed before 1978. The document demands agreement by the seller, buyer, and the realtor who has to sign the form.

3. Information about amenities in the house

Sellers have to give the status of any electrical appliances which will go to the buyer with the house. There are about 32 items listed on the document including electrical appliances and the sewage system.

It also asks if the property has an airport, farm, or a shooting range in its vicinity which would create some level of noise pollution for the homeowner.

4. Pending litigations, if any

It is important to note that the sellers need to disclose if there are any ongoing suits and land disputes. It also asks sellers to mention encroachment-related issues if any. Sellers also have to give detailed information if the house was damaged by flood, fire, landslides, or any other climatic calamity.

C. What happens if sellers present incorrect information on the Seller Disclosure Agreement?

If the buyer finds out that the seller has lied or given incorrect information about the material defects in the property before the sale, they can terminate the agreement with immediate effect.

If an issue with the property arises after the sale, which doesn’t correlate with the Michigan Seller’s Disclosure Statement (SDS) then the buyer can sue the seller for misrepresentation or omission. But the catch here is that if material defects happen after the sale, then the seller is not responsible for the same. Also, there is a section in the agreement to safeguard the seller’s interest. It says that the information submitted in the agreement is to the best knowledge of the seller.

Even though it is important to inspect the house before the MLS listing, it is not mandatory for the sellers as there is a disclaimer at the end of the Seller Disclosure Agreement stating that the seller has revealed ‘the best information available and known’.

It becomes a buyer’s prerogative to do a detailed check before locking in the property to avoid further discrepancies. Sellers also have a responsibility, to be honest about the condition of their house and submit the Seller Disclosure Agreement the earliest so that it builds trust and the transaction is sweat-free and profitable for both parties.

D: How to ensure clarity in Sellers Disclosure Agreement?

Many sellers in Michigan are going for FSBO free listing which means that they need to take total control of all the formalities associated with the selling of their house. Homeowners have to present a detailed Sellers disclosure Michigan and here is how you can ensure a smooth submission.

1. Hire an expert

Though not mandatory, it is always a good idea to hire a home inspector to review the property. Problems highlighted by the expert could be fixed or submitted in the SDS. This would ensure no last-minute surprises for buyers and eventually a smooth sale.

2. Submit SDS well in advance

Submitting SDS well in advance shows preparedness and integrity. If the buyers get the disclosure agreement beforehand, they are well-equipped and there is certain ease between the buyer, seller, and the agent (if any) pre and post-sale.

3. Be honest

It is very important, to be honest about the condition of the property for sale. Misinterpretation or omission of material damage to the house can cause sellers a lawsuit, according to Michigan law. Being truthful at an outset builds credibility which is important if you want buyers and agents to take you seriously.

E. Conclusion

It is a sellers’ market in Michigan and hence more and more individuals are opting for FSBO free listing options this leaves them with complete autonomy over the deal. It also increases complications for FSBO sellers concerning certain legal aspects associated with Michigan real estate. SDS is an important part of the documentation and a seller must submit it on time.

Flat Fee MLS Michigan companies like Houzeo are of help for first-time FSBO sellers as they can pay for their platinum package and avail services of a full-service virtual real estate agent who can review the document in depth.

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