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Tag Archives: high frequency trading

John Lothian Newsletter: Happy Flash Crash; Nasdaq to Launch New Stock-Options Trading Venue; Bids for the London Metal Exchange Due Monday John Lothian Newsletter,Newsletter

The flash crash was two years ago; high-frequency trading since then has bred high-frequency analysis over unsupervised algorithmic trading, but less consensus or operational changes. Nasdaq is going to launch a new options platform, too! Concern is growing that since the number of people trading options isn’t increasing exponentially, adding lots of new options venues will do little other than fragment the existing order pool. And if anyone else wants to bid for LME, today is the day to get them in.

John Lothian Newsletter: ELX Plans Agricultural Futures In Challenge To CME; Trading firms in uproar over Nasdaq OMX’s clearing U-turn; Derivatives Overhaul Inevitable, But Trade Group Sees Delays John Lothian Newsletter,Newsletter

ELX Futures has plans to launch a set of new contracts for agricultural products, hoping for a wider stance to take on CME Group. Nasdaq OMX announces that it will delay Nordic clearing reforms, and that doesn’t sit well with trading firms, who had been buying new infrastructure in order to prepare for the changes. Sentiment at the Chicago ISDA conference points to the implementation of some new derivatives reform, but participants are hopeful they can hold some of it off for the time being. The Asia section has the first trickle of volume reports for the month of April….

John Lothian Newsletter: Madrid bourse overhauls trading system; CFTC: NYSE’s US Futures Market Should Improve Surveillance; LCH Raises Margin Cost for Trading Some Spanish, French Debt John Lothian Newsletter,Newsletter

BME in Spain gets its exchange systems ready for high-frequency traders. The CFTC reviews NYSE rule enforcement practices, and says that they should watch the doors and windows more carefully. LCH.Clearnet boosts the margin levels for some Spanish and French bonds. In the top box, Jim Kharouf has a JLN Metals Five Minutes interview with gold analyst Gargi Shah; CME Group reports earnings; and Philip McBride Johnson suggests that politicians aren’t all that concerned with the difference between doing something sensible versus simply doing something.

John Lothian Newsletter: HFT slows down in US ahead of exchange action; Weighing SEC’s Crackdown on Fraud; Lenders Again Dealing Credit to Risky Clients John Lothian Newsletter,Newsletter

High frequency trading is on its way to being named “a little less frequency trading”, as activity slows down in the face of exchange rules against certain kinds of order activity. The SEC has passed the century mark in enforcement actions related to the financial crisis, but questions are still pending as to whether the agency has been effective enough. In the “This rock looks familiar” department, banks are once again urging high risk borrowers to take on more debt. And in today’s top box, Simon Rostron of Rostron Parry gets gussied up and bare-kneed in an appeal for kids.

Former SEC Chairman David Ruder Discusses the ‘Flash Crash’ & Dodd-Frank (Part 1 of 2) Interview,Regulation,Tech / HFT,Video

Northwestern Law School professor emeritus David Ruder talks to editor/producer Nicole V. Rohr about his experience as SEC chairman during Black Monday in 1987, and also about what stemmed from the subsequent flash crash in May 2010. Ruder was a part of the President’s Working Group on Financial Markets in 1988 and more recently worked on the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues. He discusses findings and changes to rules surrounding circuit breakers, dark pools and naked access. View Part 2 here.

John Lothian Newsletter: D-Boerse To Wind Down Stock Platform On Manipulation Fears; Derivatives Entrepreneur Seeks To Launch Swaps Exchange; MF Global Funds Missing Days Before Bankruptcy John Lothian Newsletter,Newsletter

Deutsche Boerse is planning to shut down its First Quotation Board small-cap listing board, in response to challenges in keeping the market clear of fraud. The swaps market may see the creation of its first exchange, trueEX. New details about the MF Global disintegration reveal that the company was using customer money for days before the bankruptcy filing, and on its final day faced a margin call that was bigger than its net worth. In the regulatory arena, the CFTC is racing to complete new rules that require mutual fund registration when fund holdings include commodity positions; and the SEC…

John Lothian Newsletter: CFTC Won’t Delay Position Limits; Regulators inching forward on Dodd-Frank rules; Bring Back Boring Banks John Lothian Newsletter,Newsletter

The CFTC rejects the idea of further consideration on position limits, and moves forward with its rules.  With regard to Dodd-Frank, however, rule adoption continues at a snail’s pace.  Calls arise from economists and bloggers to return banks to an old and tested role:  that of a place where money is cultivated in a boring, slow and relatively-low-risk manner.  In the top box, JJLCO announces that GFI Group has joined as a JLN sponsor; and Leo Melamed takes aim at Bart Chilton’s cheetah.

MF Global News (12/9/11 AM) Blog,Regulation

The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 9, 2011. In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.

Alice Botis – Fidessa Interview,Tech / HFT,Video

Alice Botis

Alice Botis‘ experience spans from being the first female NASDAQ market maker to heading up Latin American business development for Fidessa. She sat down with John Lothian News editor Jessica Titlebaum to discuss the high frequency trading environment in Latin America, how the MILA initiative (otherwise known as the Integrated Latin American Market) is impacting growth in the region and how the industry has changed for women in this global marketplace.