News

Current Articles | RSS Feed RSS Feed

EU Clampdown on ‘Flash Boy’ Traders Turns Technical

By Philip Stafford and Alex Barker
Published April 14, 2014 Financial Times

The battle to rein in high-frequency traders in Europe is about to shift to the arcane world of rule writing, as the EU seeks to give teeth to the world’s toughest clampdown on the sector.

On Tuesday, the European Parliament will pass the most sweeping reforms of market regulation since the financial crisis, in an attempt to catch up with technologies that allow traders to seek nanoseconds of advantage when buying and selling.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Modernizing our Regulatory Structure

By Richard H. Neiman and Mark Olson
Published April 14, 2014 The Hill's Congress Blog

Streamlining America’s financial regulatory architecture was a major missed opportunity in the Dodd-Frank Act. Our existing structure is a patchwork of reactions to past financial crises that date back more than 150 years. Modernizing this patchwork system would improve regulation, enhance financial stability and increase economic growth. Today, we propose a road map for how to achieve these goals.

Each major U.S. financial regulator was created following a crisis. The need for Civil War funding birthed the Office of the Comptroller of the Currency (OCC). The Panic of 1907 brought about the creation of the Federal Reserve. The Great Depression resulted in the Federal Deposit Insurance Corporation and the Securities and Exchange Commission (SEC).

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

New Bill Wades Into CFTC Overreach Debate

By Richard Henderson
Published April 11, 2014 The Trade

The Commodity Futures Trading Commission (CFTC) may be limited in its ability to enforce new swaps rules if a bill that has gained early support in the US House of Representatives is passed.

The Customer Protection and End-User Relief Act on Wednesday was approved by the US House Agriculture Committee with bipartisan support and may face a full vote on the House floor.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Massad Moves Step Closer to Leading CFTC

By Peter Schroeder
Published April 8, 2014 The Hill's On the Money

President Obama's pick to head the Commodity Futures Trading Commission took a step closer to confirmation Tuesday.

The Senate Agriculture Committee signed off on Timothy Massad to serve as the financial regulator’s next chairman by a voice vote. The panel also approved a pair of nominees to serve as CFTC commissioners, Sharon Bowen and J. Christopher Giancarlo.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

The Great Trading Bake-Off Hots Up

By Anna Irrera
Published April 7, 2014 Financial News

There is a new competition in trading, with the heat turned up by European regulations that are pushing a huge volume of securities trading on to public exchanges in the name of increasing competition and reducing risk. The winners will be those who can set up new venues with just the right ingredients to attract a big enough slice of that business.

There is no shortage of hopefuls eager to cash in, but there is no quick and easy recipe for setting up a successful trading platform. The process requires a high dose of patience and a meticulous ability to mix together a long list of sophisticated parts.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Lawmakers Spurred by Lewis Book Try to Slow Flash Traders

By Derek Wallbank
Published April 4, 2014 Bloomberg

Democrats in Congress today will renew a long-stalled push to levy fees on high-frequency trading in an effort to generate hundreds of billions of dollars -- or tax the practice out of existence.

The move comes after Michael Lewis, author of the book “Flash Boys,” charged that the stock market is rigged against investors because of high-frequency traders with advanced computers. That sparked a national debate, prompting lawmakers to take up what just last week had been a dormant issue.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Hedge Funds Argue Against Tougher Rules at CFTC Roundtable

By Kris Devasabai
Published March 19, 2014 Risk

Hedge funds should not be subjected to enhanced capital, leverage and liquidity rules, fund managers warned US regulators at a Commodity Futures Trading Commission roundtable on risk management practices yesterday, arguing that increased regulatory requirements would stifle innovation and liquidity.

"[Regulators] shouldn't be telling hedge funds what contracts they can negotiate or how much leverage they can have," said Manish Mital, general counsel at Halcyon Asset Management in New York, adding that if an investor wants a hedge fund to invest in illiquid securities, "they should be able to do it".

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

SEF Shift Compounds Fixed-Income Misery

By Christopher Whittall
Published March 15, 2014 IFR

Fixed-income desks are on course for a third consecutive quarter of dire returns, as rock-bottom interest rates and a swathe of new regulations continue to weigh down on a business that has come to account for over half of investment banks’ revenues.

The structural headwinds to fixed income have continued to mount this year, with the US swaps market beginning its momentous transition to exchange-trading through swap execution facilities in mid-February, causing a further dent in already depressed trading volumes.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Hedge Fund Risk Management Faces Scrutiny at U.S. CFTC

By Silla Brush
Published March 18, 2014 Bloomberg

Hedge-fund and mutual-fund firms will face scrutiny of their risk-management practices in a meeting today with the top U.S. derivatives regulator.

The Commodity Futures Trading Commission staff is scheduled to meet in Washington to discuss funds’ controls for risks tied the firms’ investments and operations, as well as to regulations. The CFTC regulates futures markets and has been expanding oversight of the swaps market under the 2010 Dodd-Frank Act financial-regulation law.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

BoE Starts Review of Clearing Houses

By Philip Stafford
Published March 17, 2014 Financial Times

The Bank of England has begun a review of how clearing houses test their resilience to market shocks in an effort to ensure that some of the world’s largest clearing houses pass tough new European industry standards.

The disclosure, in the Bank’s first annual report on markets infrastructure, comes as European regulators examine applications by the region’s clearing houses to operate their businesses under new rules.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails
All Posts