May 20, 2013
No matter what happens with the rest of this Greatest Recession Since the Depression lets stop trying to blame it on runaway quantum finance. Math is not the problem. It gives answers. It provides precision (sometimes illusory). And, translated into computer coding, it runs endlessly and tirelessly. But somebody had to make it up in the first place. And maintain it. And manage it.
May 6, 2013
The chief executive of Goldman Sachs does some standup, sitting down at the Investment Company Institute's general membership meeting Thursday.
April 17, 2013
Mutual funds are not going away. But their business model is in the midst of a long-term, momentous and, most likely, irrevocable shift.
March 19, 2013
The SEC's Norm Champ says he and risk assessors will be asking "tough questions" of fund directors to make sure their attention is not be stretched too thinly.
February 21, 2013
When it comes to disclosure, everyone's for transparency. But that doesn't mean that fund boards know what's in the trades their brokers have completed for the customers.
February 6, 2013
When the S&P 500 hits 1,500, watch out.
January 23, 2013
A Great Rotation into stocks may bring an end to the greatest bull run in bond history.
January 15, 2013
The "trade through" rule rolled out in 2007 is not going away, even if it adds operational complexity to markets. Even if it is unnecessary.
January 9, 2013
Goldman Sachs is showing a potential way out of the logjam on whether or not to float the net asset value of shares of money market mutual fund shares.
December 21, 2012
A new round of card-playing will ensue, now that the Intercontinental Exchange is primed to take over the New York Stock Exchange by this time next year.
December 14, 2012
The future has a habit of obliterating forecasts that the end is at hand.
December 5, 2012
Money fund reform is not going away, after Schapiro departs. But then again, neither is the SEC.
November 19, 2012
Go to your nearest high-quality university. Find out who the 10 top math geniuses are. Invite them to a party. Drop in a bunch of X-boxes. Find your next star trader.
October 31, 2012
We all live now in always-on markets. But they don't have to be always on.
October 31, 2012
We all live now in always-on markets. But they don't have to be always on.
October 25, 2012
Think operations managers don't get enough respect?
Go demand the respect, contends Gerard McGraw.
October 9, 2012
Exactly why does anybody not want to make a stab at figuring out whether the costs outweigh the benefits of changes that radically reshape an industry?
September 27, 2012
If you cant make your mind up about the long term prospects of a stock when you have 7,200 opportunities every hour (in a half-second world), youre way too indecisive
September 25, 2012
Why opening up a swaps trade to a 15-second delay is behind the times, even in illiquid markets. And could undermine capital formation.
September 12, 2012
When something changes in the world and there is a new regime, the question is who is going to respond to it first.
September 10, 2012
How to keep markets fast, while taking speed out of the equation. And, in the process, putting minds back into thinking about what stock markets are really about.
September 5, 2012
Nasdaq OMX Group probably has its report from IBM on the state of all its information systems, commissioned in the aftermath of the Facebook IPO difficulties. But you may never know.
August 29, 2012
SEC chairman Mary Schapiro cashed out last week on money fund reform. Or did she?
August 22, 2012
On October 15, the Legal Entity Identifier Implementation Group holds an "operational solution demonstration day" in Basel, Switzerland.
August 15, 2012
Call me crazy. But investing doesnt have to happen and wont happen in a microsecond.
August 8, 2012
Breaking the $1 a share value of a money fund could break the industry. But capital buffers would not.
August 1, 2012
Before technology disruptions stall or stop what's left of confidence in capital markets, it's time for the industry to cooperate on holistic means of preventing them.
July 25, 2012
The first competition to become a central operating authority for registering and distributing ID codes for securities market participants goes to DTCC and SWIFT. Now the fun begins
July 17, 2012
Each time a crisis hits capital markets, the stunning part too often is how few checks and balances there are in place. Particularly when writing a check for the balance wouldnt be so tough.
July 11, 2012
The SEC has finally mandated creation of a consolidated audit trail (CAT). Now comes the fun part: The participants in creating the plan may also be competitors in bidding to create the system.
July 2, 2012
Why is it capital markets can talk about a crisis in confidence, but seem unable to do much about it?
June 27, 2012
High-frequency trading is just getting defined. But front-running already is. And there should not be an exclusion for automated applications of it.
June 20, 2012
The speed of moving data in and out of devices executing trades is now being measure in nanoseconds. But the race to zero speed may have zero social value.
June 15, 2012
You could store the entire database on a thumb drive in your pocket. The challenge is not technical.
June 11, 2012
Nasdaq OMX chief Robert Greifeld got taken to task for being on a plane when SEC chairman Mary Schapiro called about Facebook. Anywhere else is an office.
June 8, 2012
If large blocks matter to you, it's a pretty clear call you get to make on where to move it.
June 5, 2012
Regulation has its price. So does creating a credit crisis. Wall Street shops are now finding they have to assign a lot of their best minds to coming up with the systems to adhere to new rules. Instead of innovating.
May 30, 2012
The technical and pricing disruptions that have given the Facebook IPO a bad name make the case self-evident for a real-time stock market audit trail.
May 25, 2012
You don't need 20 digits to identify 1 million companies. But we're getting 'em. That could be a good thing.
May 23, 2012
Capital markets needs to coordinate responses to technology accidents, before they happen. Not just after.
May 18, 2012
Nasdaq was going to prove its technical superiority over BATS Global Markets, which couldnt even get its own shares launched. On its plate: Facebook shares. And, even after repeated testing, it couldnt launch on time.
May 14, 2012
There are 900 registrars of domain names, worldwide. The same could happen with legal entity name servers, for financial markets
May 9, 2012
Here's how one manager, in automating his own strategy, eschewed market cap as the basis for picking stocks for an index fund. For Brian K. Evans, it's share price that matters.
May 1, 2012
Sunday will mark the second anniversary of the Flash Crash that occurred on May 6, 2010. The SEC and CFTC haven't even begun to review high-speed automated trading practices.
April 25, 2012
Stock markets thrive just fine, without it. The key to regaining volume is to regain confidence.
April 18, 2012
BlackRock chairman Laurence D. Fink looks for a genie to re-awaken investing, long-term. And finds one.
April 11, 2012
Suddenly, social media is everywhere on Wall Street. Some times to communicate. Mostly to trade, for profit. Next up: exchange operations. Then, what?
April 2, 2012
Eyes can get deceived in fractions of a second. But bids of 0.0002 a share do appear to have hit the BATS Exchange for BATS shares on March 23.
March 27, 2012
BATS shot itself in the foot, with faulty code. But what disruptive code never gets the glare of public scrutiny?
March 23, 2012
Its own shares. Its own exchange. Its own technology. And it cant stage its own I.P.O.
March 22, 2012
In all the discussions of the operational forces that can create corporate and systemic risk, one rarely gets mentioned.
March 14, 2012
If you want a stormy, husky, brawling, answer to a problem, just turn to the Heart of America.
March 6, 2012
The new normal, SWIFT chief executive Lazaro Campos says, is we dont know where were heading. But his cooperative could signal the next disruption, before it happens.
February 29, 2012
The Large Trader Reporting Rule requires just two pieces of new information to be sent in to SEC. But it may not be that easy.
February 22, 2012
Next week, the world changes for exchange-traded funds. On March 1, Bill Gross gets into the game.
February 15, 2012
Low latency has led to narrower spreads. But now it comes to the spreading of ideas -- and spare moments.
February 8, 2012
Is Facebook more formidable than Google? Heres why Facebook is looking stouter to a lot of fund managers, investors and technologists, in a face-off of numbers
February 1, 2012
Long live the 90% control of the European derivatives market that DB and NYSE would have enjoyed. It wouldn't have lasted.
January 25, 2012
Why accepting swaps for clearing after a trade is executed may be simpler. At least for now.
January 18, 2012
Theres logic in thinking that trading in funds that promise double or triple the movement of the market will exacerbate the swings that occur. But it would invert reality.
January 11, 2012
Most people see the wide swings of prices of stocks and say there is volatility in the market. The CBOE instead has found there is a market for volatility.
January 4, 2012
Fixed-income products are the new darlings of investors. Which means ... more scrutiny of transactions is likely forthcoming.
December 21, 2011
Mary Schapiro: Looking for a last second solution to your high-speed trading gift shopping quest? Here's one. Every second auctions.
December 16, 2011
The Hong Kong Exchanges Friday completed its upgrade to a new high-performance trading system. But dont expect it to appeal necessarily to microsecond traders.
December 12, 2011
Predictions are easiest to assess, when a year is over.
December 7, 2011
In the case of BATS Europe and its outage this week, it proved not to be a plan.
November 30, 2011
The cost of the Securities and Exchange Commission's consolidated audit trail of securities transaction will go up, if an algo happens to go wild. Don't bet against it.
November 21, 2011
We should not be thankful that the ingredients for this nation's new fiscal diet haven't been prepared.
November 16, 2011
The silly season is nearly upon us. And the systems still aren't in place yet that will allow Wall Street to fix itself.
November 9, 2011
The open outcry system is back. Its just embedded in an electronic trading system.
November 2, 2011
Lets make no mistake: Its hard very hard to run always-on high-speed high-performance electronic exchanges. Period.
October 27, 2011
If Nasdaq wants to build a lasting technology business, it's got to make sure its customers have failsafe "network connectivity."
October 18, 2011
Regular assets under management didn't include leverage. But regulated assets under management will.
October 12, 2011
The green columnar pad is next to extinct. So soon will be the stand-alone spreadsheet. Here's why.
October 5, 2011
Wall Street firms are everyones favorite whipping posts. Just ask Occupy Wall Street, Anonymous Hackers or the New York state attorney general. But the frenzy can be tamed, in at least one case, with better numbers.
September 28, 2011
Its sad, but true. There ought to be a Volcker Rule between the front and back offices.
September 21, 2011
SWIFT tries to turn data and online identities into a new business: digital asset banks.
September 13, 2011
Size breeds complexity, making the largest financial institutions operations impossible to understand, much less administer, observes John Chen.
September 7, 2011
Baby Boomers are about to go into retirement. George OKrepkie thinks hes riding the boom of a coming bull market in loans of all types.
August 29, 2011
Ten years in, the challenge remains: never to forget. Here's a way to meet the challenge.
August 22, 2011
The securities industry likes volume. It dislikes volatility. Can it have one without the other?
August 17, 2011
The straightest path matters to Michael Persico. He brokers light.
August 15, 2011
Where is it written in the Constitution (or securities law) that markets have to be open continuously, from 9:30 a.m. to 4 p.m.? A modest proposal, to avoid whipsaw in millisecond markets.
August 1, 2011
Could large traders simply split up their orders, so they dont appear to be so large? Unanswered questions about the SECs Large Trader Rule.
July 25, 2011
Over-the-counter stock markets are trying to grow up. So, now the offspring of pink sheets are looking to create a slew of DADS.
July 18, 2011
Why is it that high-frequency trading jangles nerves so much?
July 11, 2011
Unless high-speed professional trading somehow leads to more Flash Crashes and everybody decides they need complete liquidity on all investments, how fast you can get in and out of these funds should not matter much.
June 29, 2011
Lets see how just good a driver you are, Bob Greifeld, now that you get a third chance to figure out a way to merge with the London Stock Exchange. And for both sides, not just one, come out winners.
June 20, 2011
Even Dr. John Bates of Progress Software was consternated about the results of this survey, released at the outset of the SIFMA Tech show last week.
June 15, 2011
Fear not. Brokers who geared up for continued growth in share volume are still ready. Bring on the 30-billion share day.
June 13, 2011
Ever since the Flash Crash, there's been talk of mandating some sort of responsibility to make markets in stocks on the companies that account for the lion's share of liquidity in modern electronic markets. There's another way, in electronic markets.
June 10, 2011
Will Stamford, Conn., lose the world's largest trading floor, if UBS leaves town? Don't bet on it.
June 8, 2011
Now, you have to come up with an app that lets your customers shop at Wal-Mart or the mall -- and invest the savings with you.
May 27, 2011
Descartes postulated, "I think therefore I am." Now, if my newly minted graduate son is any indication, the modern equivalent in philosophy has to be: I code, therefore I am.
December 28, 2009
Some times, itís better not to know what you donít know about financial markets. Then, you might just do things right.
December 21, 2009
When you break it down, what high-frequency trading is breaking down each trading day into the equivalent of a year of trading (or, you could contend, multiple years). And, you cash out, at the end of each year, er, each day.
December 14, 2009
On the ground floor of the building in which this is being typed, Oliver Stone has set up shop. Barely a stoneís throw from the New York Stock Exchange and in direct eyeshot of the Statue of Liberty, the movie producer is at it again. Heís shooting Wall Street 2. But he may be looking for "villainy" in the wrong place.
December 9, 2009
If thereís one piece of new regulation you can probably expect to see come out of the Securities and Exchange Commission early next year, it will be a set of rules on how ďsponsored accessĒ has to be controlled. Itís not too late to determine who controls the controls.
December 3, 2009
If the securities industry is determined enough, it could easily include algorithms that track every use, every transfer of an investorís dollars between accounts at an investment firm and how those dollars were used. And block Ponzi schemes like Bernie Madoff's or even Tom Petters' from getting off the ground.
November 30, 2009
No matter what happens with the rest of this Greatest Recession Since the Depression letís stop trying to blame it on runaway quantum finance. Math is not the problem. It gives answers. It provides precision (sometimes illusory). And, translated into computer coding, it runs endlessly and tirelessly. But somebody had to make it up in the first place. And maintain it. And manage it.