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The Expert View
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.
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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?
The SEC
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.
SEC v. ICI:
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.
