“The Senate Agriculture Committee on Tuesday approved the nomination of Timothy G. Massad, a former corporate lawyer, as chairman of the Commodity Futures Trading Commission, one of Wall Street’s toughest watchdogs.” “The Senate committee also approved the nominations of Sharon Y. Bowen and J. Christopher Giancarlo as commissioners. The three now await full confirmation by […]
Dennis Kelleher, President and CEO of Better Markets, an independent nonprofit organization that promotes the public interest in the financial markets, made the following statement about the House Agriculture Committee’s vote passing H.R. 4413 the re-authorization bill for the Commodity Futures Trading Commission (CFTC): “This bill rolls back derivatives reform and puts American families at risk […]
The CFTC is the derivatives cop on the Wall Street beat. Indeed, it is the only agency standing between Main Street and Wall Street’s reckless, high risk derivatives gambling that will cause another financial crash if it is not adequately regulated. And Main Street will again foot the bailout bill. The House Agriculture Committee’s CFTC […]
“In the world of financial trading, a front-runner is someone who gains an unfair advantage with inside information, including access to a high-speed transaction network revealing specific trades other people are trying to make. “Flash Boys,” Michael Lewis’s new nonfiction thriller, reveals the high-tech details of this largely invisible process. More important, it reveals the […]
“Michael Lewis’s new book about high-frequency trading and how he believes the markets are “rigged” ends with a cliffhanger. “To illustrate some of the technology used by high-speed firms, the author joins a group of women in Pennsylvania for a bicycle ride along the path of a microwave network used in trading. Microwave networks are […]
“Words like “rigged” and “scam,” which have been used to describe how high-frequency trading firms make money in the markets, usually indicate something illegal has occurred. The attorney general, Eric H. Holder Jr., added to that perception when he confirmed at a congressional hearing on Friday that the Justice Department was investigating high-frequency trading “to […]
“Scrutiny of high-frequency trading is stirring memories among investment veterans of earlier scandals when the government targeted price-fixing and fraud in U.S. equity markets. “Michael Lewis’s book “Flash Boys” and probes by the New York attorney general and Federal Bureau of Investigation are spurring outcry from Washington to Newport Beach, California, as investors and politicians […]
“The Federal Reserve said Monday it will give banks two years of extra time to conform certain debt holdings with the Volcker rule, but stopped short of granting an exception the industry had been seeking. “The Fed said banks would have two additional years to make sure their collateralized loan obligations don’t fall under the […]
“It’s not every day that you find a fan club for new taxes, especially among economists and legal experts. “But a burst of outrage in recent days generated by Michael Lewis’s new book about the adverse consequences of high-frequency trading on Wall Street has revived support in some quarters for a tax on financial transactions, […]
“The Federal Reserve is giving U.S. banks two more years to ensure their holdings of certain complex and risky securities don’t put them afoul of the new Volcker Rule. “The Fed’s move announced Monday didn’t give banks an outright exemption for the securities from the Volcker Rule’s ban on high-risk investments. Wall Street banks had […]
“The Federal Reserve on Monday announced a second course correction for last year’s Volcker rule in a move that gives banks more time to divest certain loan-backed securities that are restricted under the proprietary trading ban, but that stops short of providing the changes sought by the industry. “The announcement of a two-year extension, through […]
“In a market dominated by electronic trading, investors are having their pockets picked—and individual investors and mutual fund shareholders are among the likely victims. “The securities exchanges’ practice of selling early access to their trading data to insiders—as the term “insiders” suggests—is a practice that looks like illegal insider trading (I also use the term […]
“U.S. Attorney General Eric Holder promised Congress a thorough investigation into whether high-frequency trading violates laws against insider trading. “Holder said he is responding to concerns being raised about whether the practice creates an uneven playing field for investors. “The department is committed to ensuring the integrity of our financial markets, and we are determined […]
“Talking heads on CNBC for days scoff that worries over high-speed trading are old news and overblown. “Reporters on the beat are defensive on Twitter. “And Attorney General Eric Holder is telling Congress not to worry — the Justice Department is already looking into high-speed traders. “Add it up: Michael Lewis has another hit on […]
“If you’re not investigating high-speed stock trading, you’re missing one of the hottest trends on Wall Street. “Atty. Gen. Eric H. Holder Jr. announced Friday that the Justice Department is examining high-frequency trading for possible violations of antitrust and insider-trading laws. “When Justice Department investigators visit companies, they may bump into their compatriots from other […]
“Just as Wall Street league tables rank firms by the size of their deals, author Michael Lewis provides his own hierarchy in the way his latest book describes banks’ stock-trading divisions. “In Lewis’s telling, Goldman Sachs Group Inc. (GS) reformed and is treating customers more fairly, especially after a management change last year at its […]
(Reuters) – “Toronto-Dominion Bank Chief Executive Ed Clark said on Thursday he believes high frequency trading (HFT) gives an unfair advantage to some market participants and wants curbs by U.S. regulators.” “HFT, in which sophisticated computer programs are used to send high volumes of orders to make markets or capitalize on price imbalances, has been criticized by […]
The ”Flash Boys” author talks to Jeffrey Goldfarb about Wall Street’s highly charged response to his book about high-frequency trading and rigged markets. *** Watch full Reuters TV video here.
(Reuters) – “The U.S. Commodity Futures Trading Commission is investigating high-frequency traders to see if they were breaching the derivatives regulator’s rules, its chief said on Thursday.” “Staff (is) responding to concerns brought to us about certain practices, whether it be spoofing just to give one example, whether that’s running afoul of our rule,” Acting Chairman Mark Wetjen […]
“Blythe Masters’s exit from JPMorgan Chase with the sale of its physical commodities business could solve Glencore’s longstanding search for a chairman.” “Ms. Masters, the brains behind the credit default swap, has the expertise to join the trading house’s board, whose all-male roll makes it an anachronism among companies in the FTSE 100-stock index. But […]
“Somewhere in New Jersey near the now famous one-and-a-half-inch black plastic tube running in a stressfully straight line to a data center outsideChicago, a broke Sergey Aleynikov wonders if he’s going back to jail for supposedly stealing a bit of mysterious high-frequency-trading computer code from Goldman Sachs.” “His surreal plight got Michael Lewis asking questions that turned into “Flash Boys,” the […]
FBN’s Charlie Gasparino, Better Markets CEO Dennis Kelleher and Themis Trading co-head of equity trading Joe Saluzzi discuss the high-frequency trading debate. *** Watch full Fox Business video here.
(Reuters) – “A lawyer for a former JPMorgan Chase & Co trader accused of helping to hide trading losses tied to a $6.2 billion financial scandal said on Wednesday his client was open to leaving France to voluntarily face U.S. criminal charges.” “Julien Grout, the former trader, is accused of participating in a conspiracy to hide losses within JPMorgan’s […]
“On a mild spring day in New York, representatives from Citigroup set out to introduce investors to the bank’s new subprime securitisation platform.” “This might sound like a scene plucked from 2007, at the height of the credit bubble that eventually sparked the financial crisis, but Citi’s “roadshow” began only this week. The US bank is prepping […]
“What is Goldman Sachs up to? The bank has been behaving strangely this week. When Michael Lewis unveiled his book Flash Boys: A Wall Street Revolt, in which he alleged the equity market is “rigged” by high-frequency traders, the bank discreetly lent him support. Then it emerged that Goldman is leaving the New York Stock Exchange floor, selling Spear, […]
“Forget the equity market. For high-frequency traders, the place to be is foreign exchange.” “Firms using the ultra-fast strategies getting scrutiny thanks to Michael Lewis’s book “Flash Boys” accounted for more than 35 percent of spot currency volume in October 2013, up from 9 percent in October 2008, according to consultant Aite Group LLC. It’s […]
“Michael Lewis, author of Liar’s Poker and The Big Short, has kicked off a storm with his new book, Flash Boys, which argues that the US equity market is rigged by high frequency traders (HFT): Here’s some of the responses: “William O’Brien, chief executive of Direct Edge, on Twitter: “Having read #FlashBoys in full, I […]
“During a clip on Sunday night’s “60 Minutes” program, host Steve Kroft asked bestselling author Michael Lewis why he was so opposed to high frequency trading. “If it wasn’t so complicated, it would be illegal,” said Lewis, who is the author of a new book called “Flash Boys: A Wall Street Revolt.” “Lewis had a […]
“Like any significant technological innovation, high-frequency stock trading has had a polarizing effect on the industry it has changed forever. “To its advocates high-frequency trading — the use of sophisticated computers to trade large amounts of stock at extremely high rates of speed — is a paradigm shifting, revolutionary leap forward. To its detractors it’s […]
“A few nights ago, CBS’s ‘60 Minutes’ provided a forum for author Michael Lewis to announce that Wall Street is ‘rigged’ and for the sponsors of a new trading venue called IEX to promise to unrig it. The focus of the TV segment was high-frequency trading, or HFT, an innovation now over 20 years old.” […]
“It is Wall Street’s equivalent of a potluck party.” “Several times a week, the world’s biggest banks get together, each bringing something for the rest of the group. But instead of casseroles and cookies, the firms come with swaps and other derivatives they aim to pair with offsetting trades held by another bank.” “Their goal: […]
“The new book by Michael Lewis has inflamed passions across Wall Street, stoking a debate over the business of high-frequency trading.” “On Tuesday, it also made for some explosive TV.” “During an otherwise quiet day for the market, Mr. Lewis, along with the star of his book, Brad Katsuyama, appeared on CNBC to face off against William […]
By Dennis Kelleher, President and CEO of Better Markets It is no surprise that Michael Lewis’ new book “Flash Boys” ignited a firestorm or, as a couple of the most knowledgeable observers called it, “Hurricane Flash Boys.” He shines a bright light on dark, unregulated, predatory HFT. Too many manipulative and abusive practices are moving […]
“In an unusual example of co-operation on Wall Street, the biggest banks are working together to tear up billions of dollars worth of derivatives trades as they seek to reduce their use of precious regulatory capital. “Financial reform in recent years has focused on making the trading of derivatives safer by mutualising credit risk through […]
Dennis Kelleher, President and CEO of Better Markets, an independent nonprofit organization that promotes the public interest in the financial markets, made the following statement about the current debate around high frequency trading: “Michael Lewis’ new must-read book ‘Flash Boys,’ about high frequency computer trading (HFT), has focused public attention on how much of today’s […]
“A dozen large investors filed a joint lawsuit against 12 banks for allegedly conspiring to rig global foreign-exchange prices, according to a new consolidated complaint. “The class-action lawsuit, filed in U.S. District Court in the Southern District of New York late Monday, was from a group of investors across the U.S. and Caribbean, including city […]
“The Commodity Futures Trading Commission and the Office of Financial Research on Monday reached a deal on a joint project to collect data from registered swap repositories. “The memorandum of understanding will establish a process for assessing the quality of the data, according to the two agencies. The joint project is expected to lay the […]
“The UK’s financial watchdog said it would examine the steps investment banks are taking to prevent traders from manipulating key benchmarks as it intensifies scrutiny of wholesale markets. “The move was announced in the Financial Conduct Authority’s business plan, published on Monday, in which it requested a boost to its budget from £445m to £452m. […]
“The global investigation into currency market manipulation spread to another major market on Tuesday, with Hong Kong’s banking regulator saying it had opened an inquiry into several banks. “The Hong Kong Monetary Authority, which oversees banks and other financial institutions in the Asian financial hub, said in an emailed statement that it was “investigating a […]
“The United States stock market, the most iconic market in global capitalism, is rigged.” “That’s what Michael Lewis told Steve Kroft on the CBS show “60 Minutes” on Sunday evening. It was a clever, if hyperbolic, way for Mr. Lewis to describe the topic of his important new book, “Flash Boys,” a make-your-blood-boil read about […]
“The Federal Bureau of Investigation is probing whether high-speed trading firms are engaging in insider trading by taking advantage of fast-moving market information unavailable to other investors. “The investigation, launched about a year ago, involves a range of trading activities and is still in its early stages, according to a senior FBI official and an […]
“Score one for the humans! Critics of high speed, computer-driven trading have a new champion. “Michael Lewis, one of the nation’s best known financial writers, takes on the topic of high-frequency trading — a strategy in which traders use computer algorithms to buy and sell stocks in the blink of an eye — in his […]
“Michael Lewis, the author of Liar’s Poker and The Big Short, has Wall Street on edge. “The prospect of a new book by the prolific former bond salesman turned chief scrutiniser, taking a hard look at the predatory world of high-frequency trading, is spurring industry participants to change their approach to a business that has […]
The Swiss Competition Commission said it’s investigating UBS AG, Credit Suisse Group AG and six more banks as the probe into the alleged manipulation of foreign-exchange rates deepens. The authorities are examining whether firms colluded to fix foreign-exchange rates, the Bern-based watchdog, also known as Weko, said in a statement today. JPMorgan Chase & Co., […]
Sunday night, March 30th, 60 Minutes did a story on market structure, computer trading and Michael Lewis’s new book “Flash Boys: A Wall Street Revolt,” which was released March 31. This show (and the book) hopefully will jump start the long simmering, but largely dormant discussion of the many well-known problems with the current markets structure. If […]
“UBS AG suspended foreign-exchange traders in the U.S., Singapore and Switzerland as its investigation into the alleged rigging of currency markets widened, according to a person with knowledge of the matter. “They include Onur Sert, an emerging-markets spot trader based in New York, and at least three more worldwide, said the person, who asked not […]
“WASHINGTON – A collective of business trade groups on Wednesday warned of potential risks for end users of margin requirements mandated under the Dodd-Frank Act. “The Coalition for Derivatives End Users said the vast majority of companies responding to a recent survey conducted by the alliance worry the rules could adversely impact how they hedge […]
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