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Tag Archives: SEC

HFT Rules: Rules for the Algo Highway Regulation,Tech / HFT,Video

HFT Rules: Rules for the Algo Highway

Customer confidence has been hit by a number of different events over the past several years and high frequency trading (HFT) problems have been among them. Ben Van Vliet, assistant professor of finance, Stuart School of Business, Illinois Institute of Technology has been looking the creation of a standard set of rules high frequency trading participants can use to ensure safer markets. Van Vliet has helped initiate the AT 9000 system, which would set standards for HFT design, backtesting, implementation and portfolio and risk management. Van Vliet says its important that the industry support such a project, rather than wait…

JLN Options: Investors Seek More Transparency on Corporate Hedging, Derivatives Exposures Newsletter,Options

LEAD STORIES Investors Seek More Transparency on Corporate Hedging, Derivatives ExposuresEmily Chasan, The Wall Street JournalCorporate disclosures on hedge accounting and derivatives trading are so opaque that investors are often unable to see the true risks companies face from engaging in those activities, according to a new report from the CFA Institute, which is recommending companies improve disclosures in those areas. S&P 500 Advances to Five-Year High on Economic ReportsBy Rita Nazareth & Sarah Pringle, BloombergU.S. stocks rose, sending the Standard & Poor’s 500 Index to a five-year high, amid better- than-forecast initial jobless claims and housing data. GFI announces…

John Lothian Newsletter: NYSE Euronext, Russell Investments in Index Tie-Up; Direct Edge to seek Brazil bourse license in “weeks”; SEC’s Hired Gun on High-Frequency Trading Gets Permanent Role John Lothian Newsletter,Newsletter

Russell and NYSE Euronext team up to distribute index data, and they may extend that relationship in the future. Direct Edge says they’re intending to open a new exchange in Brazil. The SEC gives their HFT expert a real office chair in ongoing efforts to understand and regulate high-frequency trading’s marketplace effects.

John Lothian Newsletter: SEC Concerned About Other Exchanges; Bats CEO Says Trade Problems a Symptom of Too-Complex Market; Europe hit hardest by slump in global equities trading John Lothian Newsletter,Newsletter

The SEC, reacting to revelations by BATS exchange that it may have been overcharging customers, is concerned that the same problem may exist in other exchanges. BATS, for its part, considers that its problems are a symptom of excess complexity in market rules and structures. The Great Volume Slump of 2012 (just invented that title) was most prominent in Europe, with those exchanges reporting lower activity than other regions. In First Read today, take a look at Tom Cashman’s essay, “Reflections from a dinosaur.” We’ve also got a fresh JLN interview with Jorge Alegria of MexDer, who talks about the…

JLN Options: VIX Futures Open Interest Reaches New High Newsletter,Options

Note to Readers:  Starting Monday, January 14, the JLN Options Newsletter will be delivered via email daily as opposed to once a week.  The daily Options blog will continue to be published as well, so you may access the day’s stories here, as always, if you prefer. John Lothian Newsletters is expanding in a variety of ways, including more original content across all our newsletters, MarketsWiki, MarketsReformWiki and expanded video series.  Sending the JLN Options Newsletter daily will afford our readers more convenience in accessing our content. The coming year should be an interesting one and we are excited to…

John Lothian Newsletter: BATS Says ‘System Issue’ Has Led to Pricing Problems Over Past 4 Years; SEC enforcement chief Khuzami is leaving; Deutsche Boerse Faces $340 Million Fine Over Iran John Lothian Newsletter,Newsletter

BATS Global Markets says that hundreds of thousands of transactions over the last few years may have been completed in violation of SEC rules. Robert Khuzami, without admitting or denying guilt, announces that he is departing from the SEC. Deutsche Borse’s Clearstream has begun talks with the US Treasury department to resolve problems with Iran-related transactions. In First Read today, take a look at JLN’s new Bill Brodsky interview, as he talks about leaving the CBOE after a 15-year stay.

CBOE CEO Bill Brodsky talks about stepping down after 15 years Interview,Options,Video

Bill Brodsky

Bill Brodsky, chairman and CEO of the CBOE, announced last month he was stepping down from his post in May 2013, and taking the role of executive chairman. He has held the top spot at the exchange since 1997 and was at the Chicago Mercantile Exchange for 15 years before taking over at the CBOE. Brodsky spoke with John Lothian about his decision, his successor Ed Tilly as well as the importance of separating the role of CEO and chairman in public companies. He also addressed some of the keys to the CBOE’s success over the past quarter century, the…

John Lothian Newsletter: SEC’s Khuzami Said to Leave Agency; Rivals Could Study Euronext Bids if IPO Plan Doesn’t Materialize; Morgan Stanley Stake in Eris Exchange Spotlights Market Shift John Lothian Newsletter,Newsletter

The SEC’s Robert Khuzami is said to be planning his exit in the near future; possibly as early as next month. Exchanges owned by NYSE Euronext in Europe could attract interest from local rivals as part of the industry shift related to the N-ICE merger. Morgan Stanley takes a stake in Eris Exchange, as standardized derivatives trading looks increasingly like a growth area.

JLN Options: Brokers Face Off Against Exchanges at Today’s Senate Hearing Newsletter,Options

Lead Stories Brokers Face Off Against Exchanges at Today’s Senate HearingPeter Chapman, Traders MagazineRepresentatives from two exchanges and two broker-dealers will likely air their differences today during a hearing hosted by the Senate Banking Committee. Derivatives traders optimistic for 2013, according to pollRisk.netThe majority of respondents to a poll expect to make more money from derivatives trading next year, despite the onset of new regulations in 2013 and continuing problems in the eurozone.**Nice to know that “things can’t get much worse than 2012.” — SR ‘Un-Volatility’ Funds Hit Fresh Lifetime HighsBrendan Conway, Barron’sThere’s an incredibly wide array of,…