Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Swartz' death fuels debate over computer crime

NEW YORK (AP) — Internet freedom activist Aaron Swartz, who was found dead in his Brooklyn apartment Friday, struggled for years against a legal system that he felt had not caught up to the information age. Federal prosecutors had tried unsuccessfully to mount a case against him for publishing reams of court documents that normally cost a fee to download. He helped lead the campaign to defeat a law that would have made it easier to shut down websites accused of violating copyright protections.
In the end, Swartz's family said, that same system helped cause his death by branding as a felon a talented young activist who was more interested in spreading academic information than in the fraud federal prosecutors had charged him with.
The death by suicide of Swartz, 26, was "the product of a criminal justice system rife with intimidation and prosecutorial overreach," his family said in a statement Saturday.
Swartz was only the latest face of a decades-old movement in the computer science world to push more information into the public domain. His case highlights society's uncertain, evolving view of how to treat people who break into computer systems and share data not to enrich themselves, but to make it available to others.
"There's a battle going on right now, a battle to define everything that happens on the Internet in terms of traditional things that the law understands," Swartz said in a 2012 speech about his role in defeating the Internet copyright law known as SOPA. Under the law, he said, "new technology, instead of bringing us greater freedom, would have snuffed out fundamental rights we'd always taken for granted."
Swartz faced years in prison after federal prosecutors alleged that he illegally gained access to millions of academic articles through the academic database JSTOR. He allegedly hid a computer in a computer utility closet at the Massachusetts Institute of Technology and downloaded the articles before being caught by campus and local police in 2011.
"The government used the same laws intended to go after digital bank robbers to go after this 26-year-old genius," said Chris Soghoian, a technologist and policy analyst with the American Civil Liberties Union's speech, privacy and technology project.
Existing laws don't recognize the distinction between two types of computer crimes, Soghoian said: Malicious crimes committed for profit, such as the large-scale theft of bank data or corporate secrets; and cases where hackers break into systems to prove their skillfulness or spread information that they think should be available to the public.
Swartz was an early advocate of freer access to data. He helped create Creative Commons, a system used by Wikipedia and others to encourage information sharing by helping people to set limits about how their work can be shared. He also helped create the website Reddit and RSS, the technology behind blogs, podcasts and other web-based subscription services.
That work put Swartz at the forefront of a vocal, influential community in the computer science field that believes advocates like him should be protected from the full force of laws used to prosecute thieves and gangsters, said Kelly Caine, a professor at Clemson University who studies people's attitudes toward technology and privacy.
"He was doing this not to hurt anybody, not for personal gain, but because he believed that information should be free and open, and he felt it would help a lot of people," she said.
Plenty of people and companies hold an opposing view: That data theft is as harmful as theft of physical property and should always carry the same punishment, said Theodore Claypoole, an attorney who has been involved with Internet and data issues for 25 years and often represent big companies
"There are commercial reasons, and military and governmental reasons" why prosecutors feel they need tools to go after hackers, Claypoole said. He said Swartz's case raises the question of, "Where is the line? What is too much protection for moneyed interests and the holders of intellectual property?"
Elliot Peters, Swartz's attorney, told The Associated Press on Sunday that the case "was horribly overblown" because JSTOR itself believed that Swartz had "the right" to download from the site. Swartz was not formally affiliated with MIT, but was a fellow at nearby Harvard University. MIT maintains an open campus and open computer network, Peters said. He said that made Swartz's accessing the network legal.
JSTOR's attorney, Mary Jo White — formerly the top federal prosecutor in Manhattan — had called the lead Boston prosecutor in the case and asked him to drop it, said Peters, also a former federal prosecutor in Manhattan who is now based in California.
Reached at home, the prosecutor, Stephen Heymann, referred all questions to the spokeswoman for the U.S. Attorney's office in Boston, Christina Dilorio-Sterling. She did not immediately respond to an email and phone message seeking comment.
Swartz's trial was set to begin in April, with an early hearing scheduled for later this month. He was charged with two sets of crimes: fraud, for downloading the articles illegally from JSTOR; and hacking into MIT's computer network without authorization, Peters said.
Peters said Swartz "obviously was not committing fraud" because "it was public research that should be freely available;" and that Swartz had the right to download from JSTOR, so he could not have gained unauthorized access.
As of Wednesday, the government took the position that any guilty plea by Swartz must include guilty pleas for all 13 charges and the possibility of jail time, Peters said. Otherwise the government would take the case to trial and seek a sentence of at least seven years.
JSTOR, one alleged victim, agreed with Peters that those terms were excessive, Peters said. JSTOR came over to Swartz's side after "he gave the stuff back to JSTOR, paid them to compensate for any inconveniences and apologized," Peters said.
MIT, the other party that Swartz allegedly wronged, was slower to react. The university eventually took a neutral stance on the prosecution, Peters said. But he said MIT got federal law enforcement authorities involved in the case early and began releasing information to them voluntarily, without being issued a subpoena that would have forced it to do so.
Swartz's father, Bob, is an intellectual property consultant to MIT's computer lab, Peters said. He said the elder Swartz was outraged by the university's handling of the matter, believing that it deviated from MIT's usual procedures.
In a statement emailed to the university community Sunday, MIT President L. Rafael Reif said he had appointed a professor to review the university's involvement in Swartz's case.
"Now is a time for everyone involved to reflect on their actions, and that includes all of us at MIT," Reif said in the letter.
Claypoole, the legal expert, said there will always be people like Swartz who believe in the free flow of information and are willing to "put their thumb in the eye of the powers that be."
"We've been fighting this battle for many years now and we're going to continue to fight it for a long time," he said.
For Swartz's family, the matter was clearer-cut, said Peters, his lawyer.
"Our consistent response was, this case should be resolved in a way that doesn't destroy Aaron's life and takes into account who he really is, and what he was doing."
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U.S. stake sale of GM to revive image

DETROIT (Reuters) - The sale of the U.S. Treasury's stake in General Motors and a possible credit rating upgrade of the U.S. automaker in 2013 will help distance the company from the stigma of its 2009 bankruptcy restructuring.
"We lose the stigma of 'Government Motors'," GM Treasurer James Davlin said on Sunday during a speech at a conference of automotive analysts. "People will be more focused on the things that they should, which is our underlying operations."
The U.S. Treasury outlined plans last month to sell its GM stake over the next 12 to 15 months. Last week, Chief Executive Dan Akerson said he expects GM to earn an investment-grade credit rating in 2013.
GM is already "trending toward investment grade," Davlin said. He pointed to GM's eleven-quarter streak of profits, its large financial cushion and its strong position in the world's two largest automotive markets, the United States and China.
"We want to ensure we have the liquidity to make it through the cyclicality of the industry," Davlin said, speaking to reporters and analysts a day before the Detroit auto show.
Until recently, uncertainty over when and how the U.S. Treasury would sell its 26-percent stake hurt GM's overall market value, Davlin said. But GM shares have risen nearly 20 percent since the U.S. government announced its exit strategy.
GM shares are ended at $30.36 per share on Friday.
Still GM has a number of challenges ahead, most prominently of which is Europe. GM is struggling to stem years of losses in the depressed and highly competitive European market where its core brands are Opel and UK-based Vauxhall.
It has made inroads in restructuring its European operations, including announcing plans to close its assembly plant in Bochum, Germany. But Akerson said he is not yet satisfied with GM's current position.
"That's probably my greatest concern -- how quickly can we turn that around," Davlin said, of Europe.
He also predicted that the U.S. dollar would rise against the Japanese yen and the euro this year. This would represent a "slight headwind" to GM, which must convert its earnings overseas into U.S. dollars. GM is also expecting a stable U.S. economy in 2013.
"We don't see a big rebound in the economy or a return to financial doldrums," Davlin said, of 2013.
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Swartz' death fuels debate over computer crime

NEW YORK (AP) — Internet freedom activist Aaron Swartz, who was found dead in his Brooklyn apartment Friday, struggled for years against a legal system that he felt had not caught up to the information age. Federal prosecutors had tried unsuccessfully to mount a case against him for publishing reams of court documents that normally cost a fee to download. He helped lead the campaign to defeat a law that would have made it easier to shut down websites accused of violating copyright protections.
In the end, Swartz's family said, that same system helped cause his death by branding as a felon a talented young activist who was more interested in spreading academic information than in the fraud federal prosecutors had charged him with.
The death by suicide of Swartz, 26, was "the product of a criminal justice system rife with intimidation and prosecutorial overreach," his family said in a statement Saturday.
Swartz was only the latest face of a decades-old movement in the computer science world to push more information into the public domain. His case highlights society's uncertain, evolving view of how to treat people who break into computer systems and share data not to enrich themselves, but to make it available to others.
"There's a battle going on right now, a battle to define everything that happens on the Internet in terms of traditional things that the law understands," Swartz said in a 2012 speech about his role in defeating the Internet copyright law known as SOPA. Under the law, he said, "new technology, instead of bringing us greater freedom, would have snuffed out fundamental rights we'd always taken for granted."
Swartz faced years in prison after federal prosecutors alleged that he illegally gained access to millions of academic articles through the academic database JSTOR. He allegedly hid a computer in a computer utility closet at the Massachusetts Institute of Technology and downloaded the articles before being caught by campus and local police in 2011.
"The government used the same laws intended to go after digital bank robbers to go after this 26-year-old genius," said Chris Soghoian, a technologist and policy analyst with the American Civil Liberties Union's speech, privacy and technology project.
Existing laws don't recognize the distinction between two types of computer crimes, Soghoian said: Malicious crimes committed for profit, such as the large-scale theft of bank data or corporate secrets; and cases where hackers break into systems to prove their skillfulness or spread information that they think should be available to the public.
Swartz was an early advocate of freer access to data. He helped create Creative Commons, a system used by Wikipedia and others to encourage information sharing by helping people to set limits about how their work can be shared. He also helped create the website Reddit and RSS, the technology behind blogs, podcasts and other web-based subscription services.
That work put Swartz at the forefront of a vocal, influential community in the computer science field that believes advocates like him should be protected from the full force of laws used to prosecute thieves and gangsters, said Kelly Caine, a professor at Clemson University who studies people's attitudes toward technology and privacy.
"He was doing this not to hurt anybody, not for personal gain, but because he believed that information should be free and open, and he felt it would help a lot of people," she said.
Plenty of people and companies hold an opposing view: That data theft is as harmful as theft of physical property and should always carry the same punishment, said Theodore Claypoole, an attorney who has been involved with Internet and data issues for 25 years and often represent big companies
"There are commercial reasons, and military and governmental reasons" why prosecutors feel they need tools to go after hackers, Claypoole said. He said Swartz's case raises the question of, "Where is the line? What is too much protection for moneyed interests and the holders of intellectual property?"
Elliot Peters, Swartz's attorney, told The Associated Press on Sunday that the case "was horribly overblown" because JSTOR itself believed that Swartz had "the right" to download from the site. Swartz was not formally affiliated with MIT, but was a fellow at nearby Harvard University. MIT maintains an open campus and open computer network, Peters said. He said that made Swartz's accessing the network legal.
JSTOR's attorney, Mary Jo White — formerly the top federal prosecutor in Manhattan — had called the lead Boston prosecutor in the case and asked him to drop it, said Peters, also a former federal prosecutor in Manhattan who is now based in California.
Reached at home, the prosecutor, Stephen Heymann, referred all questions to the spokeswoman for the U.S. Attorney's office in Boston, Christina Dilorio-Sterling. She did not immediately respond to an email and phone message seeking comment.
Swartz's trial was set to begin in April, with an early hearing scheduled for later this month. He was charged with two sets of crimes: fraud, for downloading the articles illegally from JSTOR; and hacking into MIT's computer network without authorization, Peters said.
Peters said Swartz "obviously was not committing fraud" because "it was public research that should be freely available;" and that Swartz had the right to download from JSTOR, so he could not have gained unauthorized access.
As of Wednesday, the government took the position that any guilty plea by Swartz must include guilty pleas for all 13 charges and the possibility of jail time, Peters said. Otherwise the government would take the case to trial and seek a sentence of at least seven years.
JSTOR, one alleged victim, agreed with Peters that those terms were excessive, Peters said. JSTOR came over to Swartz's side after "he gave the stuff back to JSTOR, paid them to compensate for any inconveniences and apologized," Peters said.
MIT, the other party that Swartz allegedly wronged, was slower to react. The university eventually took a neutral stance on the prosecution, Peters said. But he said MIT got federal law enforcement authorities involved in the case early and began releasing information to them voluntarily, without being issued a subpoena that would have forced it to do so.
Swartz's father, Bob, is an intellectual property consultant to MIT's computer lab, Peters said. He said the elder Swartz was outraged by the university's handling of the matter, believing that it deviated from MIT's usual procedures.
In a statement emailed to the university community Sunday, MIT President L. Rafael Reif said he had appointed a professor to review the university's involvement in Swartz's case.
"Now is a time for everyone involved to reflect on their actions, and that includes all of us at MIT," Reif said in the letter.
Claypoole, the legal expert, said there will always be people like Swartz who believe in the free flow of information and are willing to "put their thumb in the eye of the powers that be."
"We've been fighting this battle for many years now and we're going to continue to fight it for a long time," he said.
For Swartz's family, the matter was clearer-cut, said Peters, his lawyer.
"Our consistent response was, this case should be resolved in a way that doesn't destroy Aaron's life and takes into account who he really is, and what he was doing.
Read More..

Worldwide Supply Appoints New Inside Sales Account Executives

Experienced inside sales professionals to manage existing accounts as well as prospect new clients for the rapidly growing recognized leader in the secondary networking hardware marketplace.

Franklin, NJ (PRWEB) January 03, 2013
Worldwide Supply, the recognized leader in the secondary networking hardware marketplace, today announced the appointment of Melissa M. Montgomery-Pascual and Alexander A. Pascual to the roles of Inside Sales Account Managers.
With over twenty years of experience in sales, this team will be tasked with growing Worldwide Supply’s existing accounts as well as prospecting new relationships. "We’re excited to have two very dynamic, seasoned sales professional join our team as we expand our reach into new business segments and strive to continue growing market share with current clients," says Jay VanOrden, CEO of Worldwide Supply.
Prior to joining Worldwide Supply, Melissa Montgomery-Pascual held a Senior Account Executive position with Network Hardware Resale. She also is owner of Melimarmonte, a successful line of Women and Children’s luxury garment and accessory fashions. She holds a BA from the University of Arizona, Tucson. Alexander (Ace) Pascual comes to us from Planet Solar, Inc. where he held the position of National Sales Manager. Ace also has significant networking experience from his tenure at Network Hardware Resale. He holds a BA from the University of Arizona, Tucson.
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About Worldwide Supply
Worldwide Supply is a recognized leader in the secondary network hardware marketplace, providing and buying networking and telecommunication equipment to, and from, companies globally. Some companies sell used networking gear to Worldwide Supply. Others may be searching for items ranging from used cisco routers to optics transceivers and beyond.
Headquartered in northern New Jersey, and with offices in California, Colorado, Massachusetts, New York, North Carolina and Texas, Worldwide Supply provides a full line of certified pre-owned and new-surplus networking and telecommunication products from major manufacturers such as Cisco, Juniper, Arris, Calix, Extreme and Motorola.
Worldwide Supply backs the products it sells with an industry-leading lifetime warranty.
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Wiccan Spells Online: PsychicTarot.us Puts the Power of Wicca to Benefit

The new metaphysical services marketplace, PsychicTarot.us, has announced the creation of their online platform allowing users to tap into the power of Wiccan spell craft and practitioners to sell their services. Followers of Wicca can list their services for sale to the public and people interested in the benefits can shop amongst the listed gigs.

Santa Barbara, CA (PRWEB) January 03, 2013
The new age services community and marketplace, PsychicTarot.us, today announced the launch of a section dedicated to Wiccan spells. Users of the site can list their beneficial spells for sale to the public and earn money with their talents, while shoppers can compare and purchase from their favored practitioner. The website will allow buyers to request enchantments (white magic only) from real Wiccans to benefit their health, wealth, happiness and other areas of their life.
"The Wiccan community is vibrant and active, we are proud to create this opportunity for people to earn money, have fun, and connect with people interested in their talents," stated Irina Shayk, representative for PsychicTarot.us. "People can list their spells or rituals for $5 and up to $50, and are limited only by their creativity."
For those who aren't familiar with the Wiccan religion, Wikipedia defines it is as a modern interpretation of several ancient pagan religions. It is often referred to as witchcraft because the adherents of the religion believe in the casting of spells to change nature and people's behavior.
According to the site, Wicca is centered around the worship of the masculine and feminine aspects of nature as represented by the moon and the sun and personalized as the moon goddess and the horned man. There are many different branches of Wicca, though many of them have as one of their cores beliefs the ideal of "An ye harm none, do what thou wilt", which derives from an ancient pagan proverb.
In a recent New York Times witchcraft report detailing the success of a local Goddess shop, the belief system is quite popular and there is a demand for the spells. PsychicTarot.us intends to connect these business owners with a global market online.
"The popularity of movies that portray the occult over the past few years have really increased the number of people who are interested not only in Wicca, but in many aspects of metaphysical pursuits. Science in many ways is simply catching up to ancient wisdom," added Ms. Shayk.
PsychicTarot.us provides a few suggestions for people who join and wish to list their services:

Love spells
Prosperity spells
A spell for good luck
Spells for continued or improved health
Success spells
Starting as low as $5, prices are reasonable for someone new looking to dabble, while more in powerful services can be listed for as much as $50 to the public. Whether one believes or not in the power of a Wiccan enchantment, the new online marketplace is sure to be great fun for visitors and professionals alike.
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ListedBy’s Stephan Piscano Perspective Featured In REI Voice Magazine’s 2013 Market Predictions

Feature projects outlook from ten prominent U.S. city, state and national real estate industry leaders and city executives.

Napa, CA (PRWEB) December 31, 2012
ListedBy (http://www.ListedBy.com), the first free online real estate marketplace and social network with live bidding public real estate auctions and ‘Best Offer’ functionality today announced that its CEO and Founder Stephan Piscano’s outlook for the real estate industry has been featured by REI Voice Magazine (http://www.reivoice.com) as part of its 2013 Market Predictions feature.
“2013 could be your last opportunity to realize huge returns on investment properties,” wrote Piscano, for REI Voice 2013 Market Predictions. “We started telling all of our partners, clients and investors at the end of 2011, that 2012 would be the last opportunity to see deals like we had been seeing for the last 3 years, and I personally told all those close to me that we would look back at 2012 and ask, how much did we capitalize on it?”
Opinions and forward outlook from ten high profile experts in real estate make up this year’s predictions. The article covers perspectives at the city, state and national levels, and features thoughts from prominent insurance, asset management and real estate investment senior managers as well as REALTOR® council, county assessment and city economic development executives.
Continued Piscano: “I believe that interest rates remaining low, combined with lack of inventory, combined with the potential for rapid inflation will cause the market to continue to rise in 2013 and beyond. There will still be exceptional investment opportunities. It will be several years before the market is fully recovered but this year could be your last opportunity for a while to capitalize on the unreal 23% ROI (Return On Investment) type of investment properties for a while. Investors will start seeing more types of real estate investments take place such as owner-carry-financing, due to the millions of Americans who have damaged credit but still may have solid income or in some cases even be multimillionaires who are tired of buying everything cash and want leverage.”
ListedBy also published The 2013 Real Estate Market, a forward looking opinion on the market based on two possible economic scenarios for the coming year. The article can be viewed at http://blog.listedby.com.
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About ListedBy
ListedBy is the first free online real estate marketplace and social network with live bidding auction and ‘Best Offer’ functionality. Buyers, sellers, real estate professionals and service providers join ListedBy to network and to list, research, buy and sell real estate assets in a collaborative, transparent environment. ListedBy is headquartered in Napa, and is privately funded. For ongoing news, please visit http://www.listedby.com/about.
ListedBy, LB Social and the ListedBy logo are trademarks or registered trademarks of ListedBy, LLC and / or its affiliates in the U.S. and other countries. Third party trademarks and brands mentioned are the property of their respective owners.
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ListedBy and Revestor Enter Marketing Agreement

NAPA Calif. (PRWEB) December 26, 2012
ListedBy (http://www.ListedBy.com), the first free online real estate marketplace and social network with live bidding public real estate auctions and ‘Best Offer’ functionality, and Revestor (http://www.revestor.com), a real estate platform that enables home buyers and investors to instantly evaluate a property’s likely returns, today announced a co-marketing agreement that builds on a number of synergies between the two organizations, including strengths and appeal within the real estate investment market segment.
The partnership incorporates a revenue share component and covers multiple cross-platform exposure and promotion programs.
"We are very pleased to partner with Bill Lyons and the Revestor team,” said Stephan Piscano, CEO and Co-Founder, ListedBy. “Buyers on ListedBy.com are looking for the type of analysis that Revestor provides, and Revestor users will benefit greatly from the free exposure ListedBy.com offers to help investors market assets to our highly targeted buyer community.”
"We are excited to offer to ListedBy members an additional tool for success, as we are about bringing to Revestor users the ability to research and buy investment properties including off-market assets on ListedBy,” said Bill Lyons, CEO and Member, Revestor.
Consumers and real estate investors across the United States can use Revestor's technology in their home buying process to estimate the risks involved with a home purchase and expectations for future potential performance of specific properties.
ListedBy members use the platform to research MLS listings nationwide and to view, bid on, or purchase homes and investment properties instantly online. Users can submit a ‘Best Offer’ on a desired property, or purchase the asset outright through the Buy-It-Now function. Buyers can also bid on listings through on-going commercial and residential real estate auction events on the site, including real estate foreclosure auctions, completely free of charge.
About Revestor
Revestor is a new real estate marketplace for consumers and investors to search homes for sale. With their patent pending technology, anyone buying real estate can search the unique application to find homes estimated to offer the best return. Users apply the information to make buying decisions that will benefit them in the long run, whether as a place to rent, live or invest in. For more information, visit http://www.revestor.com.
About ListedBy
ListedBy is the first free online real estate marketplace and social network with live bidding auction and ‘Best Offer’ functionality. Buyers, sellers, real estate professionals and service providers join ListedBy to network and to list, research, buy and sell real assets in a collaborative, transparent environment. ListedBy is headquartered in Napa, and is privately funded. For ongoing news, please visit http://www.listedby.com/about.
# # #
ListedBy, LB Social and the ListedBy logo are trademarks or registered trademarks of ListedBy, LLC and / or its affiliates in the U.S. and other countries. Third party trademarks and brands mentioned are the property of their respective owners.
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Business Systems Integrators’ EDI Suite Announces General Release of Integration with Microsoft Dynamics GP 2013

BSI provides EDI integration with newly released Microsoft Dynamics GP 2013 to broaden capabilities and support for Dynamics GP users.

Lawson, MO (PRWEB) December 27, 2012
Business Systems Integrators, LLC, (BSI) a best-of-breed EDI solutions provider for the Microsoft GP, AX and NAV marketplace, today announced the general release of integration of its BSI EDI Suite with Microsoft Dynamics GP 2013. BSI’s EDI Suite provides Electronic Data Interchange capabilities for multiple versions of Microsoft Dynamics GP, and now also for GP 2013. This integration provides the same user-friendly capabilities and support for numerous industries and usage scenarios, including 3PL, retail/grocery and supplier onboarding, with one of the deepest, most robust integrations in the market. The additional integration that BSI has with Microsoft Dynamics GP 9.0, 10.0, 2010 and AX 3.0, 4.0, 2009, 2012 and NAV shows the company’s parallel positioning with Microsoft’s history of providing cutting-edge, agile and easy-to-use solutions for the Microsoft Dynamics user community.
“This general release broadens our support for our Dynamics GP users--for our on-premise EDI users as well as our SaaS users with our partner, SPS Commerce,” said Larry Knoch, CEO and founder of BSI.
About Business Systems Integrators
Business Systems Integrators, LLC. is a Microsoft-Certified software and service provider who has been involved in ERP and EDI for nearly 24 years. BSI provides on-premise EDI as well as SaaS EDI in conjunction with SPS Commerce. BSI, LLC prides itself on quality solutions and service that meets customers’ needs and exceeds expectations - whether it's implementing one of BSI’s software products or for custom integration development.
Learn more about Business Systems Integrators’ product lines and EDI solutions for Microsoft Dynamics AX, Dynamics GP and NAV at http://www.bsiedi.com .
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Global Technology Transfer Group (GTT Group) Releases December Patent Market Outlook and Q3 2012 Patent Market Index (PMI)

Global Technology Transfer Group, Inc. (GTT Group), the world leader in patent transaction advisory and patent analysis services, releases the Q3 2012 Patent Market Index (PMI), an index tracking patent transaction activity and trends in the patent marketplace. The Q3 2012 PMI continues the steady growth trend set since Q3 2009, growing 13.1 points in Q3 2012 over the previous quarter.

Portland, OR (PRWEB) December 27, 2012
Global Technology Transfer Group, Inc. (GTT Group), the world leader in patent transaction advisory and patent analysis services, releases the Q3 2012 Patent Market Index (PMI), an index tracking patent transaction activity and trends in the patent marketplace.
The Patent Market Index grew 13.1 points in Q3 2012 over the previous quarter, from 96.5 to 109.6. The Q3 2012 PMI continues the steady growth trend set since Q3 2009.
“One important indicator of the current quarter PMI strength is the significant number of small and medium sized transactions,” explained Michael Lubitz, CEO and Chairman of GTT Group. “Our expectation when reporting the Q2 2012 PMI was for a significant uptick in Q3 and Q4, and it came through for Q3. We remain optimistic to report continued growth in Q4 through the first half of 2013. ”
The number of Patent Asset Transfers jumped in Q3 2012, but this was due to a large backlog at the USPTO. The PMI should maintain its 100-plus level into the first half of 2013 with secondary transfer returning to recent representative levels. Twelve transactions made the Notable Patent Transfers list this quarter, a reflection of the current activity in small and medium sized transaction. Most Active Dealmakers of Q3 2012 included Intel, Samsung, Microsoft, Cisco, and Facebook.
To obtain a complete copy of the Patent Transaction Market Report, subscribe to the Quarterly Patent Transaction Market Report and Patent Market Index by visiting the GTT Group website. GTT Group makes this information available as a courtesy to the community.
Additional research and analysis studies are listed in the Quarterly Patent Transaction Market Report. For access to any of these studies, or to inquire about developing a study for a specific company, please contact Dan Buri, Director Asset Services at GTT Group.
About Global Technology Transfer Group, Inc.

Global Technology Transfer Group, Inc. is a patent transaction advisory and consulting firm. GTT Group combines core competencies in patent valuation with its global network to deliver unparalleled results. GTT Group’s services include Patent Valuation, Patent Brokerage, Patent Acquisition, Patent Licensing Support, Patent Related Standards Analysis, Patent Research and Strategic Analysis. The company’s corporate headquarters are in Portland, Oregon, with representation in North America, Asia, and Europe.
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Whisky Marketplace Offering a Wide Range of Aged Whiskies

Online seller of whisky brands WhiskyMarketplace.co.uk is now offering an exciting range of aged whiskies. The seller offers different blends of whisky originating from distilleries around the world that are arranged in order of age between three years and fifty years.

(PRWEB) December 27, 2012
Going into 2013, Whisky Marketplace is now offering its customers a wide range of blends with varying ages. Ranging from three years to even sixty year old whiskies, the website’s extensive whisky collection is appreciated by whisky lovers in many parts of the world. For those keeping score, the age printed on a whisky label denotes the youngest possible age of the whisky and makes a perfect gift for any season, or even a way to kick off the new year.
Each bottle is a blend of whiskies from different casks, with each whisky at least as old as the label shows. Most people will be familiar with the range of popular 12 year old whiskies, which are reasonably priced and include popular brands such as Ballantines and Old Pulteney. In its 15 year old range, some of the most popular brands on Whisky Marketplace in 2012 included Ardbeg, Dalwhinnie, Glenfiddich, and Old Elgin among several others.
The website boasts an extensive collection of 18 year old whiskies such as the Glenfiddich, Glenlivet and Glenrothes. Beyond that, favourites in the 21 year range include brands such as Highland Park, Gordon & MacPhail, Mortlach, Benriach, and Bladnoch. The seller’s 25 year old whisky collection is an enviable set of fine blended and well aged brands like Glen Grant, Benromach, and Linkwood. Ideal for special occasions, the 25 year old whisky collection at Whisky Marketplace is a great place to find presents for all seasons.
For lovers of slightly rare, exclusive and expensive whiskies, there are 30 year old whisky blends from Carsebridge, Glentauchers, Strathclyde, and MacPhail. Forming some of the finest and more expensive whisky blends, the 40 year old whisky collection includes classics such as the Bunnahabhain 1972, Abbey Speyside and Linkwood 1970.
And it goes further back than that, with almost 30 different versions of 50 year old whisky. Some of the most popular blends with the 50 year old mark include North British 1962, Glenfarclas 1959 and 1961, MacPhail 1937, Pride of Strathspey 1937 and Glen Grant 1936.
How far back does it go? Three of Whisky Marketplace’s most prized whiskies include the Macallan 1949 priced at £15,000, the Macallan Lalique Crystal worth £17,500 and the Springbank 1919 priced at a whopping £50,000.
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CitizenShipper.com Members Find Delivery Jobs That Drive Them to the Moon and Back....Twice

CitizenShipper.com, an online marketplace of shipments that connect with drivers passed a major milestone this year, with drivers on the site clocking up over a million miles. For those looking to find delivery jobs and driving jobs, CitizenShipper.com offers a cosmic solution.

Denver, CO (PRWEB) December 27, 2012
Denver based startup company, CitizenShipper.com, is a new peer-to-peer marketplace that connects people who have shipping requirements with people who can actually do the driving. The site has been serving the US market since 2009, and recently expanded into Canada helping Americans and Canadians find driving jobs in a down economy.
Citizenshipper offers companies and individuals a better alternative to high priced, time-constrained and inflexible conventional delivery/courier services. CitizenShipper links people who want something delivered (the customer) with the people wish to do the delivering (the driver). It can be anything, a letter, a package, to something as large as a big-screen TV. Pets are also popular things that are transported on the site.
This year, CEO Richard Obousy announced a major milestone for the company. "We tallied the total number of miles drivers registered on our site have driven shipping stuff." Explains Obousy. "It turns out, you could get to the Moon and back...twice!" It's a nice metric when you think about it, and just goes to show how active the drivers are who are registered to the site.
CitizenShipper has grown quickly into a marketplace where drivers planning on making a trip somewhere anyway can leave quotes on thousands of online shipments. Payments for these completed shipments range from as low as $20 for local delivery jobs, to as much as $5,000 for heavy equipment and difficult to move items
"This is a great way for people to get stuff shipped, and also great for people looking to find driving jobs and delivery jobs." Closes Obousy.
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Existing home sales rise to fastest pace in three years

Home resales rose sharply in November to their fastest pace in three years, a sign the recovery in the housing market is gaining steam.
The National Association of Realtors said on Thursday that existing home sales climbed 5.9 percent last month to a seasonally adjusted annual rate of 5.04 million units.
That was the fastest since November 2009, when a federal tax credit for home buyers was due to expire. Sales were well above the median forecast of a 4.87 million-unit rate in a Reuters poll.
The U.S. housing market tanked on the eve of the 2007-09 recession and has yet to fully recover, but steady job creation has helped the housing sector this year, when it is expected to add to economic growth for the first time since 2005.
NAR economist Lawrence Yun said superstorm Sandy, which slammed in the U.S. East Coast in late October and disrupted the regional economy for weeks, had only a slight negative impact on home resales.
The NAR expects some purchases delayed by the storm to add a slight boost to resales over the next few months, Yun said.
Nationwide, the median price for a home resale was $180,600 in November, up 10.1 percent from a year earlier as fewer people sold their homes under distressed conditions compared to the same period in 2011. Distressed sales include foreclosures.
The nation's inventory of existing homes for sale fell 3.8 percent during the month to 2.03 million, the lowest level since December 2001.
At the current pace of sales, inventories would be exhausted in 4.8 months, the lowest rate since September 2005.
Distressed sales fell to 22 percent of total sales from 29 percent a year ago.
The share of distressed sales, which also include those where the sales price was below the amount owed on the home, was also down from 24 percent in October.
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New York City should hike taxes on big business-comptroller

 New York City's top financial officer and possible contender for mayor in 2013, John Liu, proposed on Thursday tax hikes for big businesses and an end to Madison Square Garden's $15 million annual property tax exemption.
The proposals by New York City Comptroller John Liu include tax hikes on private equity firms, which would help offset his plan for $500 million in tax breaks and lowered fines for 90 percent of the city's small businesses.
Liu is expected to vie for the Democratic mayoral nomination for the election in November 2013.
The city could end tax breaks for big companies - more than $250 million of which were handed out last year, Liu said.
The city could also eliminate its $15 million annual property tax exemption for Madison Square Garden, the indoor arena in midtown Manhattan that's home to the New York Knicks basketball team. Madison Square Garden has been exempt from paying taxes on real property since 1982 under New York state law.
The arena is owned by The Madison Square Garden Co, which also owns the Knicks and other professional sports teams. The company also owns Radio City Music Hall, the Beacon Theatre and others venues, as well as television networks.
Liu also proposed examining tax breaks for special interests. Insurance companies, for instance, have not paid the general corporation tax since 1974, at a cost of $300 million annually to the city, he said.
Private equity firms could also start paying the unincorporated business tax for carried interest or gains from assets being held for investment. The exemption costs New York City about $200 million a year, Liu said.
Liu's package would use the revenue generated by those measures to offset his plan to ease the tax burden for small businesses.
He proposed ending the city's general corporation tax for all businesses with liabilities under $5,000 -- about 240,000 business in the city, or 85 percent of those that currently pay the tax.
His plan would also reduce some fines, as well as exempt businesses that make less than $250,000 in annual income from the city's unincorporated business tax.
The proposals would have to be approved by the governor and state legislature after a request by the city council.
The city is facing a possible $2.7 billion gap in fiscal 2014 that could grow to $3.8 billion the following year, Liu said.
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Republicans push own "fiscal cliff" plan; talks frozen

 Republicans in the Congress pushed ahead on Thursday with a "fiscal cliff" plan that stands no chance of becoming law as time runs short to reach a deal with President Barack Obama to avert a Washington-induced economic recession.
House of Representatives Speaker John Boehner's "Plan B" to limit income-tax increases to the wealthiest sliver of the population appeared likely to pass the House on Thursday evening after it narrowly cleared a procedural hurdle in the afternoon.
However, Obama has vowed to veto the plan, and Senate Majority Leader Harry Reid said he will not bring it up for a vote in the Democratic-controlled chamber. White House spokesman Jay Carney called it a "multi-day exercise in futility."
Still, passage of Plan B could give Boehner the political cover he needs to strike a deal that would break with decades of Republican anti-tax orthodoxy.
"Time's running short. I'm going to do everything I can to protect as many Americans from an increase in taxes as I can," Boehner told a news conference.
Though it does not raise taxes on as many affluent Americans as Obama wants, the bill would put Republicans on record as supporting a tax increase on those who earn more than $1 million per year - a position the party opposed only weeks ago.
That could make it easier eventually to split the difference with Obama, who wants to lower the threshold to households that earn more than $400,000 annually. Obama also faces resistance on his left flank from liberals who oppose cuts to popular benefit programs, which Republicans say must be part of any deal.
Obama and Boehner will need to engage in more political theater to get lawmakers in both parties to sign on to the painful concessions that will have to be part of any deal to avert the cliff and rein in the national debt, analysts say.
"They are now in the mode where they have to demonstrate how hard they're trying to get everything they can," said Joe Minarik, a former Democratic budget official now with the Committee For Economic Development, a centrist think tank.
Even as he pressured Obama and the Democratic Senate to approve his plan, Boehner indicated that he was not willing to walk away from the bargaining table.
"The country faces challenges, and the president and I, in our respective roles, have a responsibility to work together to get them a result," Boehner said.
TIME RUNNING OUT
Obama and Boehner aim to reach a deal before the end of the year, when taxes will automatically rise for nearly all Americans and the government will have to scale back spending on domestic and military programs. The $600 billion hit to the economy could push the U.S. economy into recession, economists say.
Investors so far have assumed the two sides will reach a deal, but concerns over the fiscal cliff have weighed on markets in recent weeks. The S&P 500 index of U.S. stocks was up 0.4 percent in Thursday trading, despite a round of strong data on economic growth and housing.
"The closer we get to the end of the year without a deal, the more optimism is going to evaporate," said Todd Schoenberger, managing partner at LandColt Capital in New York.
Shares crept up after Boehner said he was prepared to work with Obama to prevent the fiscal cliff from kicking in.
Lawmakers are eager to wrap up their work and return home for the Christmas holiday, but congressional leaders kept the door open for last-minute action.
The Senate was expected to leave town on Thursday or Friday, but Reid said it could return next week to vote on any deal.
Boehner indicated the House would stay in session after Thursday's vote, scheduled for 7:45 p.m. EST (0045 GMT on Friday).
Several influential conservative groups have condemned Plan B, and some Republicans are expected to vote against it. But passage appeared likely after the House narrowly voted by 219 to 197 to bring the bill to the floor for debate.
The U.S. Chamber of Commerce, an influential business group that has often tangled with the Obama administration, offered grudging support.
"We are not comfortable allowing tax increases on anyone in this environment. However, we understand that, at times, politics requires compromise," the Chamber's top lobbyist, Bruce Josten, wrote in a letter to lawmakers.
To placate conservatives, Boehner also scheduled a vote on legislation that would shift $55 billion in scheduled defense cuts to cuts in food and health benefits for the poor and other domestic programs.
That measure also would roll back some of the Dodd-Frank financial regulation reforms of 2010. It is not expected to become law.
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Canada's seven-month budget gap narrows to C$10.6 billion

Canada's federal budget deficit narrowed in the first seven months of the fiscal year to C$10.57 billion ($10.68 billion) from C$13.90 billion in the same period last year as personal and corporate income tax revenues rose and debt charges were lower.
The monthly shortfall in October was C$1.68 billion, compared with a gap of C$2.13 billion a year earlier, the Department of Finance said in a report on Friday.
The Conservative government in October pushed back by one year, to 2016-17, the date it expects to eliminate the deficit. Most economists believe that if the economy continues to grow, the books could be balanced sooner.
Ottawa has estimated a 2012-13 deficit of C$26 billion, including a C$1 billion cushion for risk.
In the April-October period, revenues increased by 3.6 percent, or C$4.9 billion, from the same period in 2011, pushed up by personal income tax and corporate income tax. Program expenses rose by 2 percent, or C$2.7 billion, on increases in elderly benefits and direct program expenses.
Public debt charges decreased 6.1 percent, or C$1.1 billion, on a lower effective interest rate.
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"Fiscal cliff" creates waiting game for payrolls firms

At payroll processing businesses across the United States, the "fiscal cliff" stalemate in Washington means uncertainty over tax-withholding tables just days before the start of 2013.
The U.S. Internal Revenue Service still has not issued the tables for next year that show how much money employers should hold back from workers' paychecks to cover federal income taxes.
Payroll processors need the tables to get their systems geared up for the new year. The tables are set by many factors, including tax rates and annual inflation adjustments.
In anticipation of late-breaking developments, Rochester, New York-based Paychex Inc will be serving Buffalo chicken wings for staffers working late on New Year's Eve, said Frank Fiorille, an executive at the payroll processing giant.
"Our systems are flexible enough that we can wait almost up until the last minute and still make changes," he said.
The IRS appreciates of the impact of Congress' inaction.
"Since Congress is still considering changes to the tax law, we continue to closely monitor the situation," IRS spokesman Terry Lemons said in a statement. "We intend to issue guidance by the end of the year on appropriate withholding for 2013."
Tax rates are slated to rise sharply for most Americans if Congress and President Barack Obama fail to reach an agreement that averts the "fiscal cliff" approaching at year-end.
"The political process will determine one way or the other what" the IRS must do, said Scott Hodge, president of the Tax Foundation, a business-oriented tax research group.
For now, he said, from the tax-collection agency's viewpoint, "doing nothing is probably the best course." This would be because withholding tables distributed now might only have to be revised if Congress acts in the next few days.
Some payroll servicers are not waiting for formal IRS guidance. The American Payroll Association, which represents about 23,000 payroll professionals, told members on Friday to rely on 2012 withholding tables until the IRS releases the new forms for 2013.
The association said its decision was based on a statement earlier this month from an IRS official.
The agency would not confirm that policy on Friday.
Tax preparer H&R Block Inc said it will use 2012 tax-withholding tables if the 2013 tables are not issued.
Executives said they were frustrated with the uncertainty in Washington, but were doing their best to cope.
"We are not doctors or surgeons and this is not life threatening," said Rob Basso with Advantaged Payroll Services, an Auburn, Maine-based payroll processor that serves 30,000 businesses. "It is annoying and disruptive to people's lives, but we will get through it.
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Waiting on fiscal cliff compromise, stocks inch up

NEW YORK (AP) — The stock market ended higher Thursday after flipping between small gains and losses throughout the morning. Uncertainty about the "fiscal cliff," just days away, was top of mind for many traders.
The Republican-controlled House pushed ahead with a bill aimed at averting the "fiscal cliff," but President Barack Obama has threatened to veto it and Democratic leaders in the Senate vowed to let it die.
Many traders now expect that the Republicans and Democrats won't reach an agreement before Christmas. The political haggling kept markets muted, and trading volume was low.
"Every time someone makes a speech, you get another move in the market," said Ben Fischer, founder and managing director of NFJ Investment Group in Dallas. "Everyone's just tracking it on a very short-term basis."
The Dow Jones industrial average fell as much as 36 points before ending the day higher, rising 59.75 points to close at 13,311.72. Other indexes followed similar patterns. The Standard & Poor's 500 rose 7.88 to 1,443.69. The Nasdaq composite index rose 6.02 to 3,050.39.
In Washington, the Republicans offered in their "Plan B" to raise taxes on the wealthy, but Democrats complained that it would not address the steep budget cuts that are automatically set to occur for military and domestic agencies.
If the Republicans and Democrats don't work out a compromise before the end of the month, the U.S. could go over the "fiscal cliff," a reference to big tax increases and government spending cuts that would automatically kick in if no budget deal is in place. Some economists fear that would push the U.S. back into recession.
But even a successful compromise is no guarantee that the market will soar. The market already assumes that a budget compromise will be reached, Fischer and others said, evidenced by its more-or-less steady increase since mid-November.
A compromise "doesn't make everything better," said Tim Biggam, market strategist with the brokerage TradingBlock in Chicago. "It just stops things from getting worse."
Biggam predicted that the economy's growth next year will remain anemic. Problems that the headlines over budget impasse have pushed out of the public consciousness, like the European debt crisis, still need to be resolved, he said.
"All the fears that we were worried about not too long ago," he said, "have not gone away."
Also at the forefront for many traders was the news that NYSE Euronext, the parent of the New York Stock Exchange, planned to sell itself to IntercontinentalExchange, an upstart and lesser-known exchange operator based in Atlanta.
NYSE Euronext's stock surged $8.20 to $32.25. The boost at IntercontinentalExchange was much more modest, with the stock rising $1.79, or just more than 1 percent, to $130.10. That signals traders think the proposed deal could be more beneficial to NYSE Euronext than to its potential buyer.
Even without the complications of the budget negotiations, the U.S. economy has been difficult to read, a pattern that continued Thursday.
The government said the U.S. economy grew at an annual rate of 3.1 percent over the summer, higher than the previous estimate of 2.7 percent. But growth is likely to slow in the current quarter and early next year.
The government also reported that the number of Americans applying for unemployment benefits rose last week, a disappointment after four straight weeks of declines. The four-week moving average of jobless claims, a less volatile measurement, fell.
The yield on the 10-year Treasury note was unchanged at 1.80 percent. World markets were also mixed. Major stock indexes in Britain and Japan edged lower, while France and China rose.
A slate of companies reported earnings, with varied results:
—Darden Restaurants, the parent of Olive Garden and Red Lobster, fell $1.34 to $45.47 after the company reported sharply lower profits. New ad campaigns meant to attract younger customers haven't done as well as the company hoped.
—Rite Aid, the drugstore chain, soared 16 percent, rising 17 cents to $1.21, after the company reported its first quarterly profit since 2007. The pharmacies filled more prescriptions, and an influx of generic drugs helped profitability.
—Scholastic slipped 50 cents to $28.79 after reporting lower profit and revenue, with demand fading for its popular "Hunger Games" trilogy.
—CarMax shot up 9 percent, rising $3.13 to $37.97, after reporting higher profit and revenue. Sales of used cars helped push results higher.
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News Summary: NYSE plans a sale, Scholastic slips

A CHRISTMAS MIRACLE?: In Washington, hopes faded that Republicans and Democrats would work out a budget compromise before Christmas. If they don't reach a deal before the end of the month, higher taxes and government spending cuts will kick in.
A BIG DEAL: The parent of the New York Stock Exchange announced that it plans to sell itself to IntercontinentalExchange, a lesser-known exchange operator based in Atlanta.
DYSTOPIA: Shares for book publisher Scholastic slipped after it reported lower quarterly profit and revenue. The company was hurt by fading demand for the best-selling "Hunger Games" trilogy and weaker sales of its profitable education technology.
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Well-timed options trades before NYSE deal raise eyebrows

(Reuters) - A surge in bullish options bets on NYSE Euronext shares ahead of Thursday's announced merger has raised eyebrows among options strategists.
IntercontinentalExchange said on Thursday it planned to buy NYSE Euronext for $8.2 billion, or $33.12 per NYSE share. The deal's value represents a 37.7 percent premium over NYSE's closing stock price on December 19, the companies said.
NYSE Euronext option trading volume on Wednesday was below average. But in the two-week period before the news, overall volume was about 27 percent above normal turnover, with a buildup of call options, according to Trade Alert, an options analytics firm in New York. A call option is a contract that gives the right to buy the company's stock at a fixed price by a certain date.
A total of 51,000 calls and 8,600 puts changed hands during the period from December 6 through December 19.
"It looks to me there may have been some information leakage earlier this month, given the heavy call volume and shift in skew," Trade Alert President Henry Schwartz said.
The U.S. Securities and Exchange Commission, which looks into unusual stock and options activity, declined to comment.
TURN OF THE SKEW
Over the two weeks from December 6 through December 19, there were more than 9,100 new positions in the January $24 calls. Buyers on December 6 were paying a premium of 44 cents per contract for those calls. That cost rose to $8 apiece by Thursday's session - a 1,700 percent increase, Schwartz said.
As of Thursday, open interest in the January $24 strike NYX calls stood at 10,343 contracts, the greatest of any call across all expirations for NYSE Euronext, according to data from Livevol, an options analytics firm in San Francisco.
That open interest has accumulated over the last 14 days, with the NYSE Euronext stock's price ranging from $23 to $24 throughout the December 6 - December 19 period.
"This suggests suspicious activity, given the timing of the announcement of the merger," said Ophir Gottlieb, managing director of Livevol.
Livevol data showed about 9,000 January $24 strike calls were bought for about 50 cents per contract during that time.
"So a $500,000 bet turned into a potential $6.5 million gain in 14 days," Gottlieb said.
In addition, there has been a recent shift in the pricing of NYX upside calls, compared with NYX downside puts. For most of this year, NYX bearish put options were more expensive than call options.
But since early December, the price of the calls outstripped the price of the puts and has stayed that way consistently. This measure, known as the "skew," or the difference in premiums paid between puts and calls, fell to its lowest level of the year on Wednesday, according to Trade Alert's Schwartz.
This inverted skew is unusual and is "typically associated with takeover candidates," Schwartz said. Participants were willing to pay more for out-of-the-money calls compared with out-of-the-money puts that are at a similar distance from the stock price.
"The put-call skew suggests traders were pricing in a higher chance of an upside move in the shares than a downside move in the short term," he said.
When traders buy out-of-the-money calls, which are contracts with strike prices way above the stock's value, they are looking for a big premium to be paid for the takeover candidate, risking the least amount of money for the biggest return.
Underscoring the interest in bullish options, total open interest in NYSE Euronext calls has been rising at a faster clip than outstanding put contracts since December 1. Call open positions rose to 87,000 contracts this month so far from 53,000 contracts on December 1, Schwartz said, while put open interest climbed to 39,000 contracts this month so far from 36,000 at the beginning of December.
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ICE to buy NYSE Euronext for $8.2 bln

REUTERS - In October, Jeff Sprecher, chief executive of upstart IntercontinentalExchange , approached NYSE Euronext CEO Duncan Niederauer with a modest proposal to team up on clearing trades in London.
As the men continued talking, Sprecher grew bolder, instead suggesting that ICE buy NYSE in what became an $8.2 billion deal announced on Thursday.
The deal will link up two powerful derivatives exchange and clearing house operators, but threatens to further reduce the clout of the New York Stock Exchange. While the New York Stock Exchange has stood for 200 years as an iconic symbol of U.S. capitalism, it is almost an afterthought in this deal.
For ICE, the crown jewel of NYSE Euronext is Liffe, Europe's second-largest derivatives market, analysts said. Niederauer had long felt that NYSE's shareholders did not appreciate the true value of the London-based futures and options exchange, and had talked to bankers about how to improve NYSE's stock price, a person familiar with the matter said.
Liffe will help ICE compete against U.S.-based CME Group, owner of the Chicago Board of Trade. Derivatives trading remains highly profitable for the exchanges, and new rules next year will dramatically expand the demand for clearing over-the-counter contracts.
The stock market businesses are less valuable to ICE. The company said it will try to spin off the Euronext European stock market businesses in a public offering, generating speculation it may also have little interest in the NYSE trading floor. Profits from stock trading have been significantly eroded by new technology and the rise of other places for investors to trade, including venues known as "dark pools."
ICE's Sprecher will be CEO of the combined organization, and the NYSE Euronext CEO will be president, a ceremonial title at many U.S. companies. In an interview, Niederauer said he would remain at least through 2014 as an "important senior member" of Sprecher's management team.
Niederauer will also be CEO of the NYSE Group. The combined company will be based in New York and Atlanta, where ICE is headqurtered.
Sprecher and Niederauerhave been friends for years, but the two stopped talking for about six weeks in 2011 when ICE teamed up with Nasdaq OMX Group to make an unsolicited bid for NYSE Euronext. That bid came even as the New York Stock Exchange operator was trying to sell itself to Deutsche Bourse . Regulatory concerns killed both deals.
Without the Nasdaq or Deutsche Bourse's huge equity operations, ICE alone has far less overlapping business and should face easy approvals, antitrust lawyers said.
The deal values each NYSE Euronext share at $33.12, a 28 percent premium to the stock's closing price on Wednesday. NYSE Euronext stock rose 34 percent to end at $32.25 on Thursday. ICE's shares fell as much as 4 percent but finished regular trading at $127.60, up 1.4 percent on the day.
ICE said it would pay annual dividends of $300 million to the companies' shareholders once the deal closes, about what NYSE pays its shareholders now.
IN THE DOLDRUMS
The deal reflected Niederauer's inability to get his company's share price out of the doldrums. Before the latest ICE offer emerged, NYSE Euronext's shares had fallen by nearly a third since ICE and Nasdaq launched their thwarted joint bid.
Further consolidation of exchanges was "inevitable" and ICE was a "great partner," Niederauer said on a call with analysts, so continuing on alone did not make sense.
"We can sit here and keep slugging away and keep working hard, but the bottom line is we had not delivered, in my mind, sufficient returns to shareholders," Niederauer said. NYSE bought Euronext, including Liffe, for 8 billion euros in 2007.
Sprecher incorporated the stalled stock price - and the unrecognized value of Liffe - as part of his pitch.
"The reason that we were prepared to pay $33 a share for a company that was trading at $24 a share was that there is a $33 company in here and the market was just not either seeing it or willing to give credit for," he said in an interview. "We said, 'let's just force the credit.'"
The two sides negotiated in secret for about eight to 10 weeks, the two CEOs said. In options markets, there were some signs that word might have leaked out, with a sudden upswing in the demand for call options on NYSE, which perform well when a company's share price rises.
ICE started out as an online marketplace for energy trading before Sprecher initiated a string of acquisitions from the London-based International Petroleum Exchange in 2001, to the New York Board of Trade and, most recently, a handful of smaller deals, including a climate exchange and a stake in a Brazilian clearing house.
ICE's current main operations are in energy futures trading and, it has steered clear of stocks and stock-options trading, key businesses for NYSE Euronext.
"This deal is probably not going to generate a lot of concern from an antitrust perspective," said Warren Rosborough, a veteran of the U.S. Justice Department's antitrust division who is now with the law firm McDermott Will & Emery.
In clearing, ICE has a popular U.S. over-the-counter and listed business, while Liffe's operation is strong in futures and based in Europe.
Concerns over a small amount of competing derivatives business could be addressed with straightforward divestitures, Rosborough said. "It's an open question about whether it will generate questions," he added. "If there is a fix, it will be relatively easy fix."
Sprecher said the deal had been "well received" by regulators after he and Niederauer completed a "whirlwind tour" in the United States and Europe ahead of Thursday's announcement. Officials at the European Commission, the Department of Justice and Securities and Exchange Commission declined to comment.
Last year, Justice Department objections blocked ICE and Nasdaq OMX's $11 billion bid on concerns the tie-up would dominate U.S. stock listings. The rival $9.3 billion bid by Deutsche Boerse fell afoul of European regulators.
A combined ICE-NYSE Euronext would leap-frog Deutsche Boerse to become the world's third-largest exchange group with a combined market value of $15.2 billion. CME Group has a market value of $17.5 billion, Thomson Reuters data shows.
Hong Kong Exchanges and Clearing is the world's largest exchange group with a market cap of $19.5 billion.
ICE said it expected to achieve $450 million in cost savings from the takeover. In the first year after the deal closes, additional earnings of 15 percent are expected.
Long-time Wall Street traders saw the potential takeover of the venerable stock exchange by a 12-year-old derivatives upstart as fraught with symbolism.
"It's the end of an era," said a director on the board of a rival exchange who did not have clearance to speak to the press and asked not to be named. "I think ultimately the floor will be closed, because Jeff (Sprecher) has shut every floor he's ever had," the person said.
With the deal still a long way from completed, Sprecher and Niederauer said they planned to keep the high-profile NYSE trading floor running. "The floor has value and in particular, it has a lot of brand value," Niederauer said. "So we are committed. Jeff is committed."
The exchange was prepared to shut down the floor temporarily during superstorm Sandy and trade completely electronically, Wall Street executives said.
Shareholders will have the option of accepting $33.12 in cash per NYSE Euronext share or 0.2581 ICE share or a mix of $11.27 in cash and 0.1703 ICE share, subject to a maximum cash consideration of $2.7 billion.
Morgan Stanley was the lead financial adviser to ICE, with assistance from BMO Capital Markets Corp, Broadhaven Capital Partners, JPMorgan Chase & Co , Lazard Group LLC , Societe Generale Corporate & Investment Banking, and Wells Fargo Securities LLC . ICE legal advisers are Sullivan & Cromwell LLP and Shearman & Sterling LLP.
The main financial advisers to NYSE Euronext are Perella Weinberg Partners and BNP Paribas. Further financial advice to NYSE Euronext was provided by Blackstone Advisory Partners, Citigroup , Goldman Sachs & Co. and Moelis & Co. Legal advisers to NYSE Euronext are Wachtell, Lipton, Rosen & Katz, Slaughter & May, and Stibbe NV.
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