The Expert View
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.
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.
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.
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.
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.
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.
February 19, 2013
The task gets tougher for chief compliance officers, every year. Here's what to watch for.
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.
January 1, 2013
Clarity has been lacking in how LEIs will be assigned and managed, but thats beginning to change, says enterprise management guru Malcolm Chisholm.
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.
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.
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.
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.
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.
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.
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.
August 13, 2012
After 10 days of misadventures, its 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
June 4, 2012
Symbols are not open if they cant be readily used across all open systems, says Matthew Bastian of CUSIP Global Services.
May 31, 2012
A false start around a specific regulators 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.
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.
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.
May 10, 2012
The time is now for the global markets to achieve a shortened, harmonized settlement cycle, says Lee Cutrone of Omgeo.
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.
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.
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.
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.
April 23, 2012
Efficient players bring more innovation and transparency to markets, says Joaquín Almunia, EU vice president for competition policy.
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.
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.
April 13, 2012
Last year was a challenging year for mergers and acquisitions between financial services firms, according to PricewaterhouseCoopers latest M&A insights report.
April 9, 2012
Fostering 'fair play' -- surprise -- results in more liquidity, better spreads and more activity for an exchange, says Neil McGovern of Sybase.
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.
March 30, 2012
The CFTC is likely to adapt its oversight to include the tools of electronic trading, commissioner Gary Gensler notes.
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.
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.
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.
March 16, 2012
Buy and hold high-quality stocks for their dividends, is the key to a healthy diet, says Josh Peters at Morningstar.
March 12, 2012
Volume is oxygen to traders. Direct Edge CEO William OBrien says an end to the thin air now being inhaled could be unmasked by years end.
March 9, 2012
Is there excessive speculation in oil and is it impacting gas prices? Yes, says CFTC commissioner Bart Chilton.
March 5, 2012
Fighting money laundering must get more rigorous and nuanced, says SEC counsel David W. Blass.
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.
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.
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.
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.
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.
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.
February 6, 2012
What to do when brokerage account information gets pilfered, according to Reuters contributor Lynn Brenner.
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.
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.
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.
January 23, 2012
Americans seem to be recognizing that the recovery is starting to pick up ground, says Jim ONeill, chairman of Goldman Sachs Asset Management
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.
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.
January 9, 2012
The SEC's new focus on returns will help it, in the words of Deep Throat ... "Follow the Money."
January 5, 2012
Here are the most important global market structure trends of 2012, visible at its start, from Alison Crosthwait at Instinet.
December 19, 2011
In emerging markets, technology organizations need to respond quickly and reliably to rapidly changing business needs, says SunGard's David Chapman.
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.
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.
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.
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.
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.
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.
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.
October 17, 2011
The simple fact is that machines cannot replace people in todays high-speed markets, says Scott Cooper of JonesTrading International.
October 10, 2011
With rogue trading again making headlines, data quality cant 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
July 21, 2011
Is socialism creeping into securities markets? Here's the case from Tim Quast, managing director of Modern Networks.
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.
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.
June 24, 2011
The Legal Entity Identifier (LEI), the creation of the U.S. Treasurys new Office of Financial Research (OFR), has now been endorsed by a SIFMA-led coalition of financial industry trade associations.
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.
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.
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.
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.
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.
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.
April 28, 2011
Its important to remember that low-latency, high-frequency trading represents just a sliver of capital markets technology spending and overall capital markets activity.
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.
April 7, 2011
In applying a universal fiduciary standard to brokers, don't break what already works.