“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 […]
“Regulatory pressure for a clampdown on the world’s $87tn asset management sector intensified on Friday as a leading Bank of England policy maker warned the industry posed mounting risks to financial stability. “Andy Haldane, a member of the BoE’s Financial Policy Committee, warned that the asset management industry risks exacerbating the financial sector’s boom-and-bust cycles […]
“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 […]
“Goldman Sachs Group Inc. GS -1.45% delivered its top executive his biggest paycheck in six years. “Lloyd Blankfein, Goldman’s chairman and CEO, received $23 million in salary and bonus for his 2013 performance. He is also eligible to earn another $6 million if the firm hits certain targets over several years, according to a securities […]
“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 […]
“The upstart stock trading venue featured in Michael Lewis’ book “Flash Boys: A Wall Street Revolt,” may apply to become a fully registered stock exchange sooner than planned, IEX Group Inc’s chief executive said on Friday. “Flash Boys” hit the stands on Monday and unleashed a fierce debate over the fairness of the U.S. stock […]
“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 […]
“Brokerages that cater to mom-and-pop investors are emerging as an early victim of the intensifying scrutiny of high-speed trading. “Shares of E*Trade Financial Corp., Charles Schwab Corp. and TD Ameritrade Holding Corp. tumbled last week amid concerns that regulators would ban a practice that allows brokerages to collect hundreds of millions of dollars a year […]
“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 […]
“Senior European policy makers and business people have expressed concern that the debate over quantitative easing by the European Central Bank risks taking the pressure off politicians to pursue structural reforms. “Monetary policy cannot do everything,” said a senior ECB official at the Ambrosetti Forum in Cernobbio, on Lake Como, this weekend. “People expect too […]
“Shareholders in Bank of New York Mellon, the world’s largest custody bank, are voicing concern about expenses and executive pay ahead of its annual meeting on Tuesday. “Two top-30 shareholders said they were disillusioned by a failure to keep expenses under control and meet targets on profitability since the company was formed in 2007 from […]
“A month and a half ago, Barry Wolf sat down for dinner at Babbo in London’s upscale Mayfair district with two of his partners at the law firm Weil, Gotshal & Manges. “Joining them was Andrew Wilkinson, one of Goldman Sachs‘s top restructuring experts in Europe. And as the four men tucked into upscale Italian […]
“After years of false starts and stops, the Justice Department is nearing the end of an investigation into the role Credit Suisse played in hiding American wealth offshore. But at the same time, a new investigation is beginning, threatening to entangle the giant Swiss bank for even longer. “The biggest danger to Credit Suisse, suspected […]
“In the coming months, President Barack Obama will have the opportunity to make over the Federal Reserve Board of Governors and put his stamp on the U.S. central bank for years to come.” “Along with naming a new chairman, he will be able to fill as many as four seats on the seven-member board.” “The […]
WASHINGTON — “Jeremy C. Stein, a member of the Federal Reserve’s board who has raised concerns about its stimulus campaign, will resign at the end of May and return to his previous role at Harvard.” “Mr. Stein, who joined the Fed in 2012, needed to return within two years to preserve his tenured professorship.” “During […]
“The Federal Reserve announced Thursday that economist Jeremy Stein is resigning from the central bank’s board of governors after a two-year stint that established him as a leading voice on the unintended consequences of the Fed’s easy-money policies.” “Stein will step down May 28 to return to teaching at Harvard University. He has been on leave from […]
(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 […]
“Bank of America Corp. BAC -0.23% is in discussions to pay more than $800 million to settle allegations it pushed customers into signing up for extra credit-card products, according to people familiar with the talks.” “The agreement with the Consumer Financial Protection Bureau, which could be announced in coming days, would mark the largest federal settlement with a credit-card […]
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 […]
“Federal Reserve Governor Jeremy Stein, a thought leader on the linkage between monetary policy and financial stability, resigned from his post to return to teaching economics at Harvard University.” “Stein, 53, will leave May 28 after two years as a governor, according to a statement by the Fed today in Washington. His return to Harvard, which doesn’t extend leaves […]
“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 […]
“Ever since the collapse of MF Global, the search for $1 billion of the brokerage firm’s customer money evoked one ominous metaphor after another, including “uphill battle” and “magical mystery tour.” “But on Thursday, the search ended with a different saying: “Checks are going in the mail.” “James W. Giddens, the court-appointed trustee overseeing the […]
“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.
“The European Central Bank has given the strongest signal yet that it is prepared to embrace quantitative easing to prevent the eurozone from sliding into deflation or even a prolonged period of low inflation.” “The ECB ignored calls from Christine Lagarde, managing director of the International Monetary Fund, to immediately deploy exceptional monetary policy measures, such as bond […]
LONDON – “The legal costs keep piling up for Credit Suisse.” “On Thursday, the Swiss bank revised its results again to reflect an additional charge of 468 million Swiss francs, or about $528 million, in increased legal provisions primarily related to a continuing investigation into Americans who secretly held assets in Swiss accounts.” “As a result, […]
“Just as Citigroup was putting a troubled past of taxpayer bailouts and risky investments behind it, the bank now finds itself in the government’s cross hairs again.” “Federal authorities have opened a criminal investigation into a recent $400 million fraud involving Citigroup’s Mexican unit, according to people briefed on the matter, one of a handful of government […]
“More than two-thirds of the gauges on Janet Yellen’s labor-market dashboard are still showing worse readings than before the recession, reinforcing her belief that the economy will need “extraordinary support” from the Federal Reserve for “some time to come.” “Only two of the nine indicators flagged by the new Fed chair — payroll growth and layoffs — are back […]
“It’s a good thing Virtu Financial doesn’t really need to go public.” “The “technology-enabled market maker” Virtu is delaying its initial public offering. Virtu may be different, but too much of what it does sounds similar to the high-frequency trading that’s suddenly in the spotlight.” “It’s reasonable to ask why a highly profitable private trading firm aspires […]
“It’s a good thing Virtu Financial doesn’t really need to go public.” “The “technology-enabled market maker” Virtu is delaying its initial public offering. Virtu may be different, but too much of what it does sounds similar to the high-frequency trading that’s suddenly in the spotlight.” “It’s reasonable to ask why a highly profitable private trading firm aspires […]
(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, […]
“To understand the geopolitics of trade these days just look at the contrasting visits by Barack Obama and Xi Jinping to Europe over the past fortnight.” “The US and Chinese presidents both arrived in Europe pitching trade as the centrepiece of their trips. The two leaders took very different approaches, however.” “Mr Obama’s relatively austere […]
“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.” […]
WASHINGTON—“Bank regulators are turning their focus from balance sheets to boardrooms as they try to forestall the chance of another financial crisis by forcing banks to better understand and manage their own risks.” “The Federal Reserve’s rejection last week of Citigroup Inc. C +0.62% ‘s plan to reward investors stems from this effort to improve management at large, complex banks. […]
“Deutsche Börse said on Wednesday that its Clearstream unit was the subject of a criminal investigation into potential violations of United States money laundering laws and sanctions against Iran.” “The German stock exchange said the unit was cooperating with an investigation by the office of Preet Bharara, the United States attorney for the Southern District of […]
“Positive signals on the US labour market ahead of Friday’s non-farm payrolls report helped Wall Street secure fresh record highs, although momentum showed signs of slowing after the bullish tone of the past two days.” “At midday in New York, the S&P 500 equity index was up 0.2 per cent to 1,889, having touched a fresh intraday […]
WASHINGTON—“U.S. securities regulators are examining whether some rapid-fire trading firms are engaged in unlawful trading practices, Securities and Exchange Commission Chairman Mary Jo White said Tuesday.” “‘Ms. White, testifying before a House Appropriations subcommittee, said the SEC currently has “‘a number’” of ongoing investigations regarding “market integrity and structure issues, including high-frequency traders.’” She declined […]
“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: […]
“Russia has threatened to retaliate against US diplomatic missions after JPMorgan Chase blocked a money transfer from a Russian embassy, in the clearest political fallout so far from sanctions imposed over the annexation of Crimea last month.” “The Russian foreign ministry said JPMorgan had blocked a transfer by Russia’s embassy in Astana, the capital of Kazakhstan, to Sogaz, an insurance company […]
“The Consumer Financial Protection Bureau needs to improve the efficiency of its program for direct supervision of banks and non-banks, a federal watchdog said today.” “The inspector general at the Federal Reserve, which audits CFPB activities, said the agency, created by the 2010 Dodd-Frank law, has failed to meet its own timeline for completing examination […]
“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 […]
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