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Tag Archives: Securities and Exchange Commission

How Now and What’s Next for Retail Forex? Blog,Commentary,Regulation

Doug Ashburn

As the self-proclaimed regulatory expert at John Lothian & Co., with my first three years here spent building our regulatory database MarketsReformWiki, I am generally the go-to person on stories involving rule changes. But when I was asked about the June 1 letter from Phillip Capital CEO Lynette Lim informing customers that the firm would be no longer be offering retail forex, due to a recent ruling by the Securities and Exchange Commission, the conversation went something like this: John: “So, what is this SEC ruling all about, and is there a story here?” Doug: “Uhh…uuh…I don’t know.” So, how…

Disruption is Not Innovation Blog,Commentary,Regulation

By Dr. Holly Bell   Prior to 1975, stocks often traded at different prices on different venues making it difficult for traders to find the best market prices. To resolve this problem, the SEC began its pursuit of a national market system, which has experienced several revisions over time. As market technology evolved, markets became increasingly automated and fragmented prompting the SEC to implement Regulation National Market System (Reg NMS) in 2005 to modernize and strengthen markets through improved dissemination of market information, reduced technical problems, and better price synchronization across exchanges.  Fast-forward to today and a dark pool seeking…

Let’s Pause a Moment: Keith Ross Talks Dark Pool Rules and IEX Interview,Regulation,Tech / HFT,Video

The addition of high speeds and multiple execution venues has altered the equity market structure in recent years. Now the SEC is weighing in with newly proposed rules on dark pools. Meanwhile, IEX, which rose to fame with Michael Lewis‘ Flash Boys, is trying to move from dark pool to full-fledged exchange. Keith Ross of PDQ Enterprises says transparency is a good thing, and a market pause has its benefits in alternate venues, but as an exchange could create chaos. When the Securities and Exchange Commission published its Regulation National Market System (Reg NMS) in 2005, only a small fraction of…

Haim Bodek, Decimus Capital Markets – A Flash Course on Market Structure Regulation,Tech / HFT,Video

“In the market there are edges that are permissible, and edges that are impermissible. It is the impermissible ones that you should care about. If it doesn’t smell right, leave.” The 2014 publication of Michael Lewis’ Flash Boys ignited a firestorm of accusations and lawsuits regarding the tactics used by certain trading firms. It has also led to a robust national debate on market structure. Haim Bodek, a former algorithmic trader who now assists the Securities and Exchange Commission in whistleblower cases, frames this debate by explaining the regulation that created the current market structure. He goes on to explain…

John Lothian Newsletter: No Exchange for You! NYSE Channels Seinfeld in IEX Critique; CME boosts top executives’ pay; From Pits to Algos, an Old-School Trader Makes Leap to Spoofing John Lothian Newsletter,Newsletter

First Read Goldman Sachs Names 425 New Managing Directors By LIZ MOYER – NY Times Nearly a third of the Goldman Sachs Group’s 425 newly minted managing directors are millennials, or people born after 1980. Forty percent were hired as analysts. Roughly 21 percent are former summer interns. nyti.ms/1HMllke ***** The last line is very interesting, nearly 21 percent of the new managing directors named were former summer interns. Check out what interns heard this fall from CME’s Sandra Ro (below) at our World Of Opportunity event in London last month. ++++ Sandra Ro, CME Group – Financial Services Disruption:…

John Lothian Newsletter: SEC Set to Approve CEO Pay-Gap Disclosure Rule; An Exchange in Australia Woos Listings From China; China Hopes to Defy History of Market Bailouts John Lothian Newsletter,Newsletter

First Read ++++ MarketsWiki Education Summer Intern Series – Day One By Sarah Rudolph, Managing Editor, JLN Our Chicago Summer Intern Series kicked off with a packed auditorium at IIT and five lively speakers, who all spoke about their passion for the trading industry. Scott Gordon, the CEO of Rosenthal Collins Group, was up first with some tips for interns on success and balance in work and life. These included checking out the view from 30,000 feet – looking beyond your particular job to know the major players, products, drivers and interactions in your industry; asking questions rather than knowing…

The Life of SCI: John Rapa Looks at the SEC’s Reg SCI Interview,Regulation,Video

After several high-profile market disturbances, from the 2010 “flash crash” to the Knight Capital algorithmic meltdown in 2012, the SEC considered a new set of rules to tighten up system compliance and integrity. The rules, known collectively as “Reg SCI” became effective in February 2015. John Rapa, president and CEO of Tellefsen & Company and a 30-year veteran consultant to exchange market structure, walks us through the new rules and what they mean for exchanges, dark pools and market participants. “It’s making mandatory what’s been voluntary up to now,” says Rapa. “Identification of mission-critical systems, testing processes, procedures, and testing…

John Lothian Newsletter: BATS Moves Toward Another Try at an IPO; Volatility Has Natural-Gas Traders Scrambling; SEC Sees Pervasive Bad Behavior in Complex Debt John Lothian Newsletter,Newsletter

First Read Ivers Riley: A Man for All Markets Jim Kharouf – JLN There are pioneers, innovators and leaders in every industry. Ivers Riley is one of the rare individuals to wear all three titles. Riley, who died yesterday at the age of 82, is one of those executives who was part of several transformational events in the financial markets’ history, including: the early stages of the options industry; the creation of exchange traded funds, one of the most successful products in the history of financial markets; two critical periods at the Hong Kong exchanges; and a key player at…

John Lothian Newsletter: Bunge says China lenders distorting soyabean trade; U.S. Treasurys Carry Weight of the World; Lost Comment Letter Triggers (Another) SEC Dissent John Lothian Newsletter,Newsletter

First Read FINRA Board Approves $50 Million Contribution to the FINRA Foundation FINRA Contribution to Provide Ongoing Support for Research and Education Aimed at Improving the Financial Capability of Individuals and Families Nationwide The Board of Governors of the Financial Industry Regulatory Authority (FINRA) approved a $50,000,000 contribution to the FINRA Investor Education Foundation to provide continuing support for the Foundation’s innovative research and education efforts. jlne.ws/1KQOBHq ***** What would you do to promote financial literacy with $50 million? ++++ Harvey Goldschmid, Ex-SEC Commissioner, Scholar, Dies at 74 by Robert Schmidt, Bloomberg Harvey Goldschmid, a former U.S. Securities and Exchange…