Free Site Registration

The Expert View

The Wireless Trader: Making the Case for the Mobile Brokerage Channel

January 7, 2014

For investment firms, the implications are clear: Mobile solutions are no longer a differentiator, but are instead an essential aspect of their relationship with customers -- both individual and institutional.

As Dark Pools Darken, Threats to Financial Markets Grow

June 20, 2013

The proliferation and growth of dark pools should concern anyone who buys or sells shares, not to mention workers whose retirement accounts hold stocks in mutual funds.

Making Speed an Asset for Asset Managers

May 14, 2013

All asset managers in pursuit of alpha in electronic markets must manage the "ill effects of latency,'' says Nitin Gambhir of Tethys Technology.

The Public Face of Disclosure

April 17, 2013

The SEC's new guidance on social media gives financial firms to restore a human face to what they do, say Eric Hazard and Jade Faugno of Intermarket Communications.

Tech Spending Up, But Not Much

March 26, 2013

As the U.S. economy slowly crawls out of the Great Recession, no one should be too optimistic for drastic improvements in spending, says Henry Hilska at Virtusa Corporation.


Taxes Interfere With Transactions

March 19, 2013

The idea of financial transaction taxes has been around for hundreds of years. But whether they make sense remains to be seen, says Tom McCabe, COO of futures exchange OneChicago.

Top 5 Trends in Broker-Dealer Market Surveillance in 2013

February 19, 2013

The task gets tougher for chief compliance officers, every year. Here's what to watch for.

Derivatives Pricing Simply Complex

January 22, 2013

When Confucius said "Life is simple but we insist on making it complicated," he did not have the pricing of derivatives in mind.

Birth of the Global LEI System

January 1, 2013

Clarity has been lacking in how LEIs will be assigned and managed, but that’s beginning to change, says enterprise management guru Malcolm Chisholm.

Citizen Journalists as Character Assassins

December 14, 2012

Crisis may be the new normal for investors, but it's also the stark reality of the communications landscape, says .Jennifer Connelly of JCPR.

The Trouble with ‘Time Float’

October 9, 2012

Gnodal CEO Bob Fernander discusses the two problems of 'cutting through' a data network, and, jockeying for the best port on a switch, to save microseconds.

To QE or not to QE?

September 17, 2012

The trillion dollar question is ... does Quantitative Easing work? Simon Denham of London Capital Group is not sure it will cure the credit crisis or U.S. unemployment.

Citizen Journalists as Character Assassins

September 7, 2012

Crisis may be the new normal for investors, but it's also the stark reality of the communications landscape, says .Jennifer Connelly of JCPR.

Talking Dollars

August 31, 2012

Time to take a break. But as you head off to enjoy the Labor Day weekend enjoy these words of wisdom about Wall Street and finance.

Investigate Entire Cash Management Industry, First

August 27, 2012

There is much to be investigated about the cash management industry, as a whole, before a fruitful discussion can be initiated on changes in just the money market funds part of it, SEC commissioner Luis Aguilar says.

Knight and Day

August 23, 2012

Pre-trade risk is a toll that some firms choose to pay by their own volition and others by regulatory mandate, says Louis Lovas of OneMarketData.

Out of Control or Asleep at the Wheel?

August 13, 2012

After 10 days of misadventures, it’s time to take a step back and look at how the industry can best manage the technological risks in its automated trading, says Steve Woodyatt of Object Trading.

Think Odd

August 9, 2012

Starting up electronic corporate bond markets are suddenly all the rage. Ironically, electronic odd-lot markets already are thriving, says Howard Edelstein of BondDesk Group.

Could Speed-of-Light Trading Trigger Next Systemic Crisis?

August 6, 2012

Computers don't sleep, don't get tired, don't care about politics and don't go on holiday in August -- but they can wreak havoc in the global financial marketplace by amplifying moves on the up- and down-sides, says D.K. Matai of the Asymmetric Threat Contingency Alliance.

Get It Out? Get It Right

August 3, 2012

Market disruptions like this week's flood of orders from Knight Capital illustrate the need for design reviews and quality assurance reviews of mission-critical trading system, says John Rapa of Tellefsen and Company.

Beyond Electronic Confirmation

July 27, 2012

Appalled by the theft of $100 million of customer funds by a futures broker? Here's what to do, according to Terrence A. Duffy, executive chairman of CME Group.

Learning from Sexual Harassment to Manage Social Media

July 19, 2012

Social media and sexual harassment both enable any employee to create liability for the firm that is impossible to prescreen and difficult to monitor, says Theresa Hamacher of NICSA.

Defining the Coming Impact of Swaps

July 16, 2012

The CFTC may now have defined what a swap is. But now comes the tough part: Implementing the rules in your systems, says Alberto Corvo of eClerx.

Who Gets Hurt by Low Volume?

July 12, 2012

Now that the regulator relies on per-trade fees to fund its budget, what do you get? Sub-penny pricing. What's next? Less equality, says Tim Quast of ModernNetworks IR.

Final Push to Push Out Paper

July 9, 2012

The industry has reached a tipping point, making it essential to push forward to full dematerialization, says Susan Cosgrove of DTCC . Your input needed.

Three Lessons from the Titanic

July 6, 2012

Keep in mind not merely the black letter law that applies to your business, but the purpose of the rules to which you are subject, says Thomas M. Selman of FINRA.

Regulatory Certainty… Really?

June 29, 2012

Brokers and asset managers have to meet FINRA's know your customer and suitability rules by July 9. The date certain is July 9. But the state of readiness isn't, says product planner Del Lang.

Words for Money Fund Sponsors

June 25, 2012

Will sponsors stand behind money market funds, when the next crunch comes? SEC Chairman Mary L. Schapiro and the Investment Company Institute are sparring. Here are their words on the support of sponsors.

Fixing Flash Crash & Facebook Fiascos

June 22, 2012

Eliminate market orders -- and make exchanges liable for their technology snafus, says Dan Mathisson, head of U.S. equity trading at Credit Suisse.

How Markets Are Broken

June 18, 2012

The stock market has become an insanely complex mess of for-profit exchanges and dark pools. This web of chaos disadvantages investors, say Sal Arnuk and Joe Saluzzi of Themis Trading.

Beware the False Promise
of “Open Symbology”

June 4, 2012

Symbols are not “open” if they can’t be readily used across all “open” systems, says Matthew Bastian of CUSIP Global Services.

Finality and the Legal Entity Identifier

May 31, 2012

A false start around a specific regulator’s immediate needs for an identifier for U.S. swaps markets should be avoided, says Allan D. Grody, president of Financial InterGroup, a proposer of systems for identifying market participants.

Auditing Orders, Monitoring Algos

May 21, 2012

FINRA expects to look at what testing of algorithms have been done before they are launched – and to monitor the impact of the algorithms after they are launched, said chief executive Richard Ketchum.

Admit It. Fix It. Move On.

May 16, 2012

When you face an “unfortunate incident” like a $2 billion trading loss, own up to it, repair it, make your company better for it, says JP Morgan Chase chairman and chief executive Jamie Dimon.

Europe, Asia, the U.S. and T+2

May 10, 2012

The time is now for the global markets to achieve a shortened, harmonized settlement cycle, says Lee Cutrone of Omgeo.

Blueprints for New Practices

May 7, 2012

Here is the Securities Industry and Financial Markets Associations set of blueprints for present and future initiatives dealing with the cumulative impact of new regulation, from executive vice president Randy Snook.

Financial Stability, Soundness, and Infrastructure

May 4, 2012

The foundations of the U.S. securities regulatory system were based on outdated assumptions about the nature of financial firms, their activities, and their relationships, says Cyrus Amir-Mokri, assistant secretary of the U.S. Treasury.

Protecting Customer Assets

April 30, 2012

In the aftermath of MF Global, customer funds protection provisions of the Commodity Exchange Act and Commission regulations need review, says CFTC Commissioner Jill E. Sommers.

Emotion as an Asset Class

April 27, 2012

Smart investors will start regarding emotion as something they can base investment decisions on, say Rob Davenport and Lee Hull of The Connors Group, a research firm that quantifies investment ideas.

Competition, Post-Crisis

April 23, 2012

Efficient players bring more innovation and transparency to markets, says Joaquín Almunia, EU vice president for competition policy.

The Case for Cost-Benefit Analysis

April 20, 2012

Before Dodd-Frank Rules are implemented, make sure each “proposed rule is optimal among all reasonable alternatives,’’ says Jacqueline C. McCabe of the Committee on Capital Markets Regulation.

How Rising Rates Will Affect Stocks

April 16, 2012

Higher ground for interest rates is not a major threat to U.S. and global stocks this year for two reasons, says Russ Koesterich, chief strategist for BlackRock's ETF business.

Dealing With Uncertainty

April 13, 2012

Last year was a challenging year for mergers and acquisitions between financial services firms, according to PricewaterhouseCooper’s latest M&A insights report.

Identifying and Eliminating Market Manipulation

April 9, 2012

Fostering 'fair play' -- surprise -- results in more liquidity, better spreads and more activity for an exchange, says Neil McGovern of Sybase.

Three Missions, Five Goals

April 4, 2012

From improving market practices to more collaboration between parts of the securities industry, Jan Ellis Snitzer sets out this year's agenda for ISITC, the trade group focused on standards in transaction processing.

Take No Algo For Granted

March 30, 2012

The CFTC is likely to adapt its oversight to include the tools of electronic trading, commissioner Gary Gensler notes.

The Humility Technical Failure Brings

March 26, 2012

Not measuring up to the excellence expected of one's company, even due to 'serious technical failure,' is humbling, CEO Joe Ratterman told customers and exchange members in the wake of BATS Global Markets' inability to bring its own stock public.

Re-Constructing Engagement

March 21, 2012

Market players need to try and reach a meeting of minds on money market mutual fund reform, says SEC commissioner Elisse Walter, and not sit out the final stages.

Three Dangerous Clouds

March 19, 2012

The ripple effect of the Volcker Rule, the SEC's 'outrageous' plans to reform money market funds and the CFTC starting to regulate use of derivatives are dangerous clouds hanging over the mutual fund industry, according to ICI general counsel Karrie McMillan.

Eat Your Dividends

March 16, 2012

Buy and hold high-quality stocks for their dividends, is the key to a healthy diet, says Josh Peters at Morningstar.

Oxygen Treatment

March 12, 2012

Volume is oxygen to traders. Direct Edge CEO William O’Brien says an end to the thin air now being inhaled could be unmasked by year’s end.

Taking a Position on Position Limits

March 9, 2012

Is there excessive speculation in oil and is it impacting gas prices? Yes, says CFTC commissioner Bart Chilton.

Past and Future of Fighting Money Laundering

March 5, 2012

Fighting money laundering must get more rigorous and nuanced, says SEC counsel David W. Blass.

Answer the Call

March 2, 2012

BlackRock chief Laurence D. Fink says leaders of business, finance and government all must work together to restore confidence in capital markets.

Defining High Frequency Trading

February 27, 2012

CFTC Commissioner Scott O'Malia is trying to define exactly what constitutes high-frequency trading. So it doesn't get whipped in the wind.

Breaking the Divide Between Front, Middle and Back Offices

February 24, 2012

Compliance has traditionally been thought of as a back office function.

However, with the onslaught of financial regulation in 2011 most firms must reconsider that, says David Fetter, chief executive of Quadron Data Solutions.

A Losing Hat Trick

February 17, 2012

The SEC's upcoming proposal to tighten the regulation of money market funds will harm investors, damage financing for businesses and governments and jeopardize the economic recovery, says ICI president Paul Schott Stevens.

Quo Vadis Europa?

February 13, 2012

Discretionary State intervention and protectionism are not the way forward to overcome the financial crisis and to adapt to the process of globalization, says European Commission industrial policy vice president Joaquín Almunia.

4 Tenets in Technology Services

February 10, 2012

With the Deutsche Boerse waltz behind it, chief executive Duncan Niederauer explains how NYSE Euronext intends to become a facilitator and enabler of capital markets.

When An Account is Hacked

February 6, 2012

What to do when brokerage account information gets pilfered, according to Reuters contributor Lynn Brenner.

DB-NYSE Deal Breaker: ‘Closed Vertical Siloes’

February 2, 2012

Joaquín Almunia, vice president of the European Commission responsible for competition policy mergers explains why the Deutsche Boerse-NYSE Euronext merger was prohibited.

Making Sense of Identifiers

January 30, 2012

Incorporating new standard identifiers into the existing soup of overlapping symbologies presents data management challenges to financial institutions, says Stephen Engdahl, senior vice president of GoldenSource.

Getting the Message on Collaboration

January 27, 2012

Securities firms need to demonstrate that they can come up with solutions that satisfy regulators on both sides of the Atlantic, as they overhaul capital markets, says Karla McKenna at ISITC. Here's what you can do.

A Shifting Mood?

January 23, 2012

Americans seem to be recognizing that the recovery is starting to pick up ground, says Jim O’Neill, chairman of Goldman Sachs Asset Management

The Next Cost Basis Challenge

January 19, 2012

The deadline for issuers to file 2011 corporate actions was Jan. 17. The devil will be applying the details to the cost basis of securities, says Stevie Conlon, tax counsel at Wolters Kluwer Financial Services.

Blindingly Obvious

January 13, 2012

A combined Deutsche Boerse-NYSE derivatives business would increase, rather than reduce, competition, if judged on a global scale. That's a point to be drawn from NYSE Euronext chief executive Duncan Niederauer's message to employees this week, as the two firms' merger foundered in Europe.

CSI: Outsized Returns

January 9, 2012

The SEC's new focus on returns will help it, in the words of Deep Throat ... "Follow the Money."

Pockets of Opportunity in 2012

January 5, 2012

Here are the most important global market structure trends of 2012, visible at its start, from Alison Crosthwait at Instinet.

Getting Agile in Emerging Markets

December 19, 2011

In emerging markets, technology organizations need to respond quickly and reliably to rapidly changing business needs, says SunGard's David Chapman.

From Canada With Love

November 28, 2011

Alison Crosthwait of Instinet reaches out to buy-side traders Down Under on the historic occasion of the launch of Chi-X Australia.

The Girl With the SEC & FINRA Tattoo

November 22, 2011

Brian L. Rubin and Katherine L. Kelly analyze disciplinary actions taken by and tattoos placed on the records of Chief Compliance Officers by the two regulatory bodies.

Germany's Position as a FInancial Center

November 14, 2011

Stock markets “are exhibiting a clear trend toward Europeanization of trading,’’ Deutsche Boerse CEO Reto Francioni told attendees of Euro Finance Week on the eve of its merger with NYSE Euronext.

Exiting This Uncomfortable Period

November 7, 2011

Halfway through the transformation of the securities industry, is the system better?, asked president Tim Ryan at the start of SIFMA's annual meeting.

Does FINRA Regulate Cloud Computing?

October 31, 2011

Broker-dealers are taking a liking to cloud computing. But moves into the cloud may heighten their oversight by FINRA, say securities lawyers Richard Sharp and Michael Kurzer at Milbank.

Identity Call

October 26, 2011

What makes a "Margin Call,'' as in the movie, really work right is the call for the identity of the counterparty, says Financial Intergroup president Allan D. Grody.

Retooling Market Surveillance

October 24, 2011

FINRA is refining and retooling its automated surveillance patterns to detect manipulation in a market where high-frequency and algorithmic trading predominate, says chief executive Richard G. Ketchum.

Algo of Choice in Tough Times is the Human Equation

October 17, 2011

The simple fact is that machines cannot replace people in today’s high-speed markets, says Scott Cooper of JonesTrading International.

Data is Not Costly. Bad Data is.

October 10, 2011

With rogue trading again making headlines, data quality can’t be ignored. In an investment bank or any asset management firm, your controls are only as good as your data, says Alberto Corvo at eClerx.

Short Sale Bans Harm Quality of Markets

October 3, 2011

There is no evidence that banning short selling of financial stocks calms markets. And it may harm them in the process, argues Alison Crosthwait of Instinet.

The Road From Here

September 22, 2011

A global system for identifying legal entities is on the cusp of becoming a reality. The road from here, from Tom Price of SIFMA at the SIBOS conference in Toronto.

The Danger of Inconsistency

September 12, 2011

Coordination of new rules across regulators, jurisdictions and geographical borders is just not happening at the level it should, says Tim Ryan, the chief executive of the Securities Industry and Financial Markets Association.

Brokerage CEOs in the Crosshairs

August 31, 2011

The enforcement chiefs of both the SEC and FINRA have made it clear that presidents and chief executive officers of broker-dealers are in their sights. Here are examples from securities counsels Brian L. Rubin and Yvonne M. Williams.

Is There Really a Future to Trading on Twitter?

August 25, 2011

Predicting stock market moves using Twitter alone is about as reliable as a witness in the Raj Rajaratnam insider trading trial, says Dr. John Bates of Progress Software.

The Flush Recession

August 19, 2011

Since 1950, the United States has never entered a recession with corporate balance sheets as flush with cash as they currently are, says Bob Doll, the chief equities strategist at BlackRock.

S&P's Flawed Thinking

August 11, 2011

After all, S&P should have properly assessed the asset-backed housing securities that led to the Great Recession not as investment-grade but what they actually were: Junk. So posits Money Management Executive's Lee Barney.

Some People Actually Pay for These Opinions?

August 8, 2011

Rather than paying S&P for its opinion, all you needed to do is look at some past CBO projections and you would have arrived at the same opinion years ago.

Fraud, According to FINRA

July 29, 2011

I was considered “a serious risk to the investing public” by FINRA. I am not. And here is my side of the story, says Brian Alfaro, founder of a Texas broker-dealer firm that has now closed.

The Market is Not Free

July 21, 2011

Is socialism creeping into securities markets? Here's the case from Tim Quast, managing director of Modern Networks.

STP – Still a Dream?

July 15, 2011

STP is not an engine oil. But straight-through-processing would make it possible for all financial edges to work smoothly with each other.

Protect Files, Before They Get Away From You

July 7, 2011

The convenience and growing use of tablet PCs and smartphones exposes security gaps and new risks when customers and employees alike store sensitive data on their personal devices, says Rob Marano of InDorse Technologies.

Embracing Legal Entity Identification

June 24, 2011

The Legal Entity Identifier (LEI), the creation of the U.S. Treasury’s new Office of Financial Research (OFR), has now been endorsed by a SIFMA-led coalition of financial industry trade associations.

Finding Speed on Web

June 17, 2011

When financial markets plunged during the Flash Crash of May 6, 2010, website response time for the leading online brokerage firms went in the opposite direction, spiking to 30 seconds or more.

Making Swaps Transparent

June 3, 2011

The more transparent a marketplace is, the more liquid it is for standardized instruments, the more competitive it is, says Gary Gensler, chairman of the Commodity Futures Trading Commission.

Opening Shanghai

May 20, 2011

Shanghai will have to become a major international financial center, as China begins to rival the U.S. as the world's greatest economic power. In the last five years: the Shanghai Stock Exchange has seen its worth grow five times, notes Professor K.C. Chan.

Legal Entity Identifiers: Finally, It’s Time

May 12, 2011

Competing systems for identifying legal entities seriously hinders capital markets from working efficiently. That should change now, says Tim Rice of Thomson Reuters.

Life After The Flash Crash

May 6, 2011

The Flash Crash "sucked all the confidence, the money and the life out of equity markets around the world," on May 6, 2010, says Seth Merrin, founder and CEO of Liquidnet Holdings, which operates a leading block trading venue for institutions. One year later, Alison Crosthwait, director, Global Trading Research at Instinet, says limits up and down on stocks are the best response.

The Chicken, The Road & Rethinking Risk Management

May 2, 2011

Chief Executive Donald Donahue describes how The Depository Trust & Clearing Corporation is "completely overhauling" its approach to risk management, at the outset Monday (May 2) of the 2011 Operations Conference of the Securities Industry and Financial Management Association.

Bringing Sexy (to the) Back (Office)

April 28, 2011

It’s important to remember that low-latency, high-frequency trading represents just a sliver of capital markets technology spending and overall capital markets activity.

Re-Mapping the Cloud

April 13, 2011

The challenge is finding ways to bring on enough computing capacity, on-demand, while controlling costs, say Dr. William L. Bain and David Worthington of ScaleOut Software.

Trust What Works

April 7, 2011

In applying a universal fiduciary standard to brokers, don't break what already works.