Mary Jo White may not think that high-frequency trading constitutes “unlawful insider-trading.” But New York Attorney General Eric Schneiderman is wondering whether it mightn’t be Insider Trading 2.0®. Read more »
Nostalgia can be a surprisingly powerful force in marketing financial products, and without knowing much about it I have high hopes for this new Canadian stock exchange? It’s like a regular stock exchange (in Canada), only they won’t allow high-frequency trading. I mean, they will allow it, but not the bad kind:
Aequitas plans to challenge “certain predatory high frequency trading strategies which have impacted the quality of existing equity markets,” Greg Mills, chairman of Aequitas and co-head, global equities at Royal Bank’s asset management unit, said in a statement. “Marketplaces in Canada and around the globe are increasingly out of sync with their traditional users as they attract and cater to volume and revenue-generating trading over traditional investors.”
You can read their position paper here if that’s your thing. It seems very worthwhile and Canadian, with an interesting mix of old-timey things (market makers would have performance obligations for their securities of responsibility) and concessions to current high-speed trading realities, but with a general emphasis on being a market for Investors and Issuers as opposed to Speculative Jerks.
I feel like that will go well? Read more »
One problem that people with a lot of time on their hands like to get worked up about is that academic economists sometimes write papers advocating positions that benefit organizations that give them money, while being coy about that relationship. On the other hand this newish paper about dark pools, which compete for stock trading orders with exchanges like NYSE and Nasdaq, has a first author whose affiliation is listed as “The NASDAQ OMX Group, Inc.,” so that’s fine then. Guess what he thinks? No, kidding, you don’t get to guess, he thinks dark pools are bad, duh.
The study, by Dr. Frank Hatheway, Nasdaq OMX Group; Dr. Hui Zheng, the University of Sydney; and Dr. Amy Kwan, the University of New South Wales, looks at US trading venues with restricted access and without displayed orders – generically referred to as “dark pools” – which increasingly segment order flow in the US. … The authors show that the effects of order segmentation by dark venues are damaging overall price discovery and market quality.
I’m a sucker for market microstructure papers because I like the Hobbesian world they imagine, where everyone is trying to rip everyone else’s face off, and keep their own face on, every nanosecond. Read more »
Proposed Regulation Would Require Stock Exchanges To Actually Test Backup Systems In The (Likely) Event They Screw Things Up (Again)By Jon Shazar
Russia may have the kind of official corruption that would make a Sicilian blush, a fairly weak grasp on the rule of law, a pair of would-be czars trading its top two political posts and, now, more orphans than it can give away. It also may have a stock exchange worth as much as the big one with the columns down on Broad Street.
The Moscow Exchange is going public, and wants the share-buying public to pay between US$4 billion and US$4.6 billion for it. By contrast, the London Stock Exchange has a market cap of about US$5.3 billion, and the New York Stock Exchange is selling itself—and the stock markets in Amsterdam, Brussels, Lisbon and Paris, and the super-desirable Liffe futures exchange—for US$8.2 billion.
Of course, buying the Micex may be a bit riskier than buying NYSE Euronext, what with everyone’s favorite former KGB agent already weighing in. Read more »
Are you in the financial sector, overworked, and worried about layoffs? Are you willing to relocate for the right job? Are you aware that there’s a market where prospects are good for job growth, you won’t have to work too hard, and they’re more relaxed on age-of-consent issues than in Greenwich? It’s called Cambodia and it’s calling your name. Read more »
It turns out tiny Middle Eastern emirates don’t need two stock exchanges. Especially when the second can only muster three listing. And even more so when that tiny emirate has very little to offer except creatively-shaped artificial islands with default notices looming.
Nasdaq Dubai is set to be bought by the Dubai Financial Market for $102 million and a 1% stake in itself. Which means that the good people at Nasdaq OMX get to experience what everyone else who invested in Dubai experienced: a 70% write-down.