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Tom Steinert-Threlkeld

Before the Fact

May 23, 2012

Capital markets needs to coordinate responses to technology accidents, before they happen. Not just after.

Can’t Anyone Stage an IPO Anymore?

May 18, 2012

Nasdaq was going to prove its technical superiority over BATS Global Markets, which couldn’t even get its own shares launched. On its plate: Facebook shares. And, even after repeated testing, it couldn’t launch on time.

Get Ready for Entity Name Servers

May 14, 2012

There are 900 registrars of domain names, worldwide. The same could happen with legal entity name servers, for financial markets

Why Price is Right

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.

Low Speed for High Speed

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.

Don’t Count on Volatility

April 25, 2012

Stock markets thrive just fine, without it. The key to regaining volume is to regain confidence.

BlackRock Answers its Own Call

April 18, 2012

BlackRock chairman Laurence D. Fink looks for a genie to re-awaken investing, long-term. And finds one.

The Social Exchange

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?

The $0.0002 Bid for BATS

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.

Code Making & Breaking

March 27, 2012

BATS shot itself in the foot, with faulty code. But what disruptive code never gets the glare of public scrutiny?

Bad Day at BATS

March 23, 2012

Its own shares. Its own exchange. Its own technology. And it can’t stage its own I.P.O.

The Stupidity Risk

March 22, 2012

In all the discussions of the operational forces that can create corporate and systemic risk, one rarely gets mentioned.

Storminess, With Cunning Answers in Chicago

March 14, 2012

If you want a “stormy, husky, brawling,” answer to a problem, just turn to the Heart of America.

Indexing the New Normal

March 6, 2012

The new normal, SWIFT chief executive Lazaro Campos says, is “we don’t know where we’re heading.’’ But his cooperative could signal the next disruption, before it happens.

Small Step. Big Change.

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.

You Say You Want a Revolution

February 22, 2012

Next week, the world changes for exchange-traded funds. On March 1, Bill Gross gets into the game.

Never a Moment to Lose

February 15, 2012

Low latency has led to narrower spreads. But now it comes to the spreading of ideas -- and spare moments.

The Facebook Bet

February 8, 2012

Is Facebook more formidable than Google? Here’s why Facebook is looking stouter to a lot of fund managers, investors and technologists, in a face-off of numbers

Missed Opportunity in DB-NYSE Quasi-Monopoly

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.

Breaking Bad: The Problem with Pre-Swap Guarantees

January 25, 2012

Why accepting swaps for clearing after a trade is executed may be simpler. At least for now.

Inverting Reality of ETFs

January 18, 2012

There’s 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.

The Value of Volatility

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.

Bonding With Bonds

January 4, 2012

Fixed-income products are the new darlings of investors. Which means ... more scrutiny of transactions is likely forthcoming.

Last Second Idea

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.

Stamping Out Speed

December 16, 2011

The Hong Kong Exchanges Friday completed its upgrade to a new high-performance trading system. But don’t expect it to appeal necessarily to microsecond traders.

2012: The Year of Recovery. Again.

December 12, 2011

Predictions are easiest to assess, when a year is over.

BATS’ Backup Plan

December 7, 2011

In the case of BATS Europe and its outage this week, it proved not to be a plan.

The Billion-Dollar Rogue Algo

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.

This Next Meal

November 21, 2011

We should not be thankful that the ingredients for this nation's new fiscal diet haven't been prepared.

The Code That Needs to be Written

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.

Open Outcry Makes Comeback

November 9, 2011

The “open outcry” system is back. It’s just embedded in an electronic trading system.

The One Percent That Matters

November 2, 2011

Let’s make no mistake: It’s hard – very hard – to run always-on high-speed high-performance electronic exchanges. Period.

Nasdaq Needs to Execute Triple Play

October 27, 2011

If Nasdaq wants to build a lasting technology business, it's got to make sure its customers have failsafe "network connectivity."

Avoiding Strike Three

October 18, 2011

Regular assets under management didn't include leverage. But regulated assets under management will.

Bye, Bye Spreadsheet

October 12, 2011

The green columnar pad is next to extinct. So soon will be the stand-alone spreadsheet. Here's why.

Whipping a Frenzy

October 5, 2011

Wall Street firms are everyone’s 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.

Operations Folks Should Not Grow Up to Be Cowboys

September 28, 2011

It’s sad, but true. There ought to be a Volcker Rule between the front and back offices.

Taking Data to the Bank

September 21, 2011

SWIFT tries to turn data and online identities into a new business: digital asset banks.

The Business With Bigness

September 13, 2011

Size breeds complexity, making the largest financial institutions’ operations impossible to understand, much less administer, observes John Chen.

The Bond Store

September 7, 2011

Baby Boomers are about to go into retirement. George O’Krepkie thinks he’s riding the boom of a coming bull market in loans of all types.

Answering the Call of 9/11

August 29, 2011

Ten years in, the challenge remains: never to forget. Here's a way to meet the challenge.

Speaking Volumes

August 22, 2011

The securities industry likes volume. It dislikes volatility. Can it have one without the other?

As the Crow Flies

August 17, 2011

The straightest path matters to Michael Persico. He brokers light.

Stop. To Think.

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.

When Large Traders Fail to Appear

August 1, 2011

Could large traders simply split up their orders, so they don’t appear to be so large? Unanswered questions about the SEC’s Large Trader Rule.

Finding Good DADs

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.

Out of the Shadows

July 18, 2011

Why is it that “high-frequency” trading jangles nerves so much?

ETFs vs. Mutual Funds

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.

Greifeld, Back in the Driver's Seat

June 29, 2011

Let’s 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.

Getting Real on Algo Testing

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.

Trading Capacity in 'Very Good Place'

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.

Redefining Market Making

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.

Stamford and the World's Largest Trading Floor

June 10, 2011

Will Stamford, Conn., lose the world's largest trading floor, if UBS leaves town? Don't bet on it.

Retail Investing, the iPhone Way

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.

The Math of Philosophy

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.

Riding the Herd, Before It Moves

May 23, 2011

Statisticians are trying to harness social media. The result? You can move on a stock, before the crowd does.

Robert Greifeld: Who Are You Going to Call?

May 16, 2011

Bob Greifeld, the aggressive chief executive officer of NASDAQ OMX Group, now has failed in the two biggest takeover attempts of his career: the 2005 bid for the London Stock Exchange and the 2011 bid for the New York Stock Exchange. The next call should go to Magnus Bocker of the Singapore Exchange. Unless Greifeld has a call waiting in his mailbox already, from Bocker.

Weigh In Now. Or Keep Your Peace.

May 9, 2011

There was a lot going on at SIFMA OPS 2011. So you may have missed the invitation to send in a proposal for what a worldwide legal entity identifier system should constitute.

A Simple Standard for Derivatives

April 24, 2011

Now, "algorithmic descriptions" are coming to derivatives. But putting the terms of contracts into computer-readable form is never easy

Giving a Single Name a Single Identity

April 18, 2011

If you’re going to have reliable trading in a stock or any other financial instruments worldwide, at any time, without fail, it’s got to have clear identification.

NYSE Shareholders Take Meetings

April 11, 2011

So the short and skinny is this: Duncan Niederauer will meet with NYSE Euronext shareholders to discuss the Deutsche Borse and Nasdaq OMX bids for their firm. He won’t meet with Robert Greifeld or Jeffrey Sprecher. But his shareholders will.

Who Wins? NYSE ... and BATS

April 1, 2011

Nasdaq OMX and Deutsche Borse will have to slug it out for NYSE Euronext. In meantime, they lose ground.

Sidestepping ‘Systemic Risk’

March 29, 2011

PALM DESERT, Calif. -- The sidestepping of what systemic risk constitutes is making it hard to know what fund companies and asset managers are supposed to do about the bill, which is not directed immediately at them, members of an Investment Company Institute panel said.

Check This Mating: SGX, Nasdaq

March 25, 2011

There are many moves on the chess board left to play. But if the Singapore Exchange's bid for the Australian Exchange falls apart and the Nasdaq OMX bid for NYSE Euronext doesn't take off ...

Just Don't Call It a "Cloud"

March 21, 2011

The average cost of a data breach is now $7.2 million. So you can't afford to keep customer data in the cloud? Not so. It's already happening.

Greifeld Plays Hold 'Em

March 16, 2011

Is Robert Greifeld bluffing about stepping in, breaking up the NYSE Euronext-Deutsche Borse marriage and putting Nasdaq OMX Group in the German exchange operator's place? Probably not. But, if he plays his cards, what does his $10 billion (or bigger) bet get him?

Tick Talk: Watching What You’re Saying

March 6, 2011

You always watched what you said to other trading desks. Now, those trading desks will not just be watching what you say. They’ll be transcribing it.

Nasdaq's Natural Alternative

February 25, 2011

Think about a rollup of all-electronic trading venues, in equities (for starters) worldwide

Clearing Up a Backdoor Takeover

February 11, 2011

All the attention about the Deutsche Borse takeover of NYSE Euronext has focused on the exchange operations -- and the symbolism of a major American capital-raising firm being under German control. But what if the deal was mostly about the backshop?

Let the Next Game Begin

February 9, 2011

The last time a German corporate giant merged with an American flagship company the "merger of equals" did not work out that well. But this time, the game is not about dominance in America or Europe. It's about creating a global always-on exchange.

Nasdaq’s Hack: Nothing to be Worried About. For Now.

February 7, 2011

Yes, it was “only” board of director information that was on a “web facing” application. But that’s sensitive enough. And it’s just the start.

Dodd-Frank Tax Battle Coming

February 2, 2011

It doesn’t take a rocket scientist to figure this out: Without a new tax on the securities industry, there won’t be reform of same.

Consolidated Fee Trail

January 20, 2011

The SEC is about to lay out its proposal for establishing a new standard of fiduciary care for investors to be given by brokers. Why not solve this the capitalist, interactive and quantifiable way, with a consolidated fee trail?

Volatility as an Asset

January 19, 2011

Volatility used to land you in jail. But that's what happens in the street, rather than on The Street.

Better Than Facebook?

January 3, 2011

Next holiday season, Goldman Sachs just might wish it had invested in a market data company, instead of Facebook.

11 (Sets of) Predictions for 2011

December 29, 2010

There will not be a consolidated audit trail set up in the next 12 months and other predictions for the New Year.

Picking Up the Tab for the C.A.T.

December 22, 2010

Maybe the SEC should pick up the tab for this breakfast. Because it may have saved the country billions in building the consolidated audit trail (C.A.T.) for stock transactions.

The Other Half

December 9, 2010

SEC chairman Mary Schapiro now believes creating a system for capturing all stock market data in close to real time is only half of the original projection of $4 billion. True. But she's probably forgetting the other half of the cost that really matters.

When The Ground Shifts

December 2, 2010

In theory, software can or should be able to “predict” returns on mutual funds, exchange-traded funds or single stocks. But figuring out when the ground shifts is not machine work.

Happy Thanksgiving, 2010

November 24, 2010

We’re going to be off on Thursday, Nov. 25, and Friday, Nov. 26. Here’s what we and all of Wall Street should be saying thanks for.

Women of the House of Madoff

November 18, 2010

When Anne Bongiorno needed to change trades listed on a customer’s account statement, she simply asked that the old one be sent back. When Joann Crupi needed to find a new custodian for assets purportedly held by Bernard Madoff Investment Securities, she simply picked a phony one.

Speed Proof

November 11, 2010

Analyzing market data and news is done in real time. Next up: The speed of trading venues and networks. Gentlemen and women, rev your algorithms – and smart order routers.

Gone in Two Seconds

November 8, 2010

At least when Nicolas Cage tried to save his brother's life, the 50 cars he stole one night did not disrupt the auto market. But when an algo goes wild, the disruption, in two seconds, is huge, says SEC chairman Mary L. Schapiro.

Taking Orders, Exchanging Risk

November 2, 2010

The SEC Wednesday likely will vote to ban naked access. But is putting the onus on brokers to develop software the right way to get pre-trade controls in place?

E-Minis and Aunt Minnie

October 28, 2010

May 6 led Aunt Minnie of Kansas City to pull her money out of mutual funds. Does she need to co-locate a server four millimeters from an exchange server, to feel she is going to get a fair shake in today's capital markets?

A License to Deal, for Algos

October 21, 2010

Hold algorithms accountable for how they are used in the systems that matter. It's not just a start towards restoring confidence in flash crashed markets. It's pretty much inevitable.

Too Many Exchanges? Not Yet

October 14, 2010

Since the May 6 Flash Crash uncovered the seeming fragility of this nation's stock markets, the prevailing wisdom seems to be that there are too many exchanges. Not.

Will You Have A Sibos Story?

October 13, 2010

You're the experts. You'll be on site Tell us about it.

For Safety’s Sake

October 7, 2010

I hadn’t been at the luncheon more than 20 minutes. And my tablemate – the chief regulatory officer for a stock exchange -- might as well have just said, “put a fork in it.”

In Greed We Trust

September 30, 2010

Pssst … is anyone out there? Trading has been quiet. Gordon Gekko is even saying time is more important than money. But don’t worry. Greed still works.

Off in the Clouds, Legally Speaking

September 23, 2010

You can put compliance into your computing cloud. But the cloud can't do the compliance for you.

Talent Worth Scouting

September 16, 2010

Wall Street is getting like the National Basketball Association. It’s sending its scouts the world over to scour its nooks and crannies for hidden talent.

Every Day Good Value: Electronic Exchange Exports

September 10, 2010

One thing America is still good at exporting are the technologies and infrastructure, as well as conceptual strategies behind, instantaneous trading of any financial instrument of any type anywhere at any time. Let's not mess this up.

Want Efficient Markets? Let SEC Phase Itself Out

August 19, 2010

Why fully electronic exchanges can and should regulate themselves.

Jerome Kerviel, Will This Compute?

August 12, 2010

It'd be very interesting to tap into Jerome Kerviel's head right now. He's the former trader who breached his limits on bets and cost Societe Generale billions. Now, his former employer has launched an enterprisewide system for assessing risk and complying with rules.

Topics

Tom Steinert-Threlkeld

banking

capital markets

technology

accounting & benefits

investment advisory