Washington, D.C., April 14, 2014 –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 today’s decision handed down by the D.C. Circuit Court of Appeals concerning cost-benefit analysis: “The D.C. Circuit Court of Appeals decision today in NAM v. […]
(Reuters) – U.S. securities regulators are considering testing a proposed reform that could drive business to major stock exchanges and away from alternative trading venues such as “dark pools” that critics say may be hurting investors by reducing the quality of pricing. The proposal, which has so far only been discussed among staff involved in policymaking at […]
“In the span of a week, Steven A. Cohen’s investment firm changed its name, hired a former federal prosecutor and became a felon.” “Breaking months of suspense, a federal judge on Thursday approved the firm’s plea deal that resolved criminal insider trading charges and required a $1.2 billion penalty, closing a searing chapter in the 22-year […]
Several of the world’s largest asset managers are discussing the creation of a joint equity trading venue, in an attempt to end the technological arms race sparked by high-frequency trading firms. Fidelity, the Boston-based manager with $1.9tn under management, has sounded out rivals about routing their share trades through a central venue that would rival […]
“Rube Goldberg: A comically involved, complicated invention, laboriously contrived to perform a seemingly simple operation.” “— Webster’s New World” “Dictionary” “Stock markets used to be relatively simple operations. People interested in buying or selling shares gathered in a particular place and traded with one another.” “Those days are long gone. Now, in the United States, the […]
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 Securities and Exchange Commission’s collusion with Wall Street over settlements related to Collateralized Debt Obligations (CDOs): “Reporting by The American Lawyer shows what Better Markets has been saying for […]
“A Federal Reserve announcement on Monday that would relax Volcker Rule conformance periods still leaves banks holding collateralized loan obligation (CLO) debt in a quandary. “The Federal Reserve intends to give banks until July 2017, a two-year extension, to divest or restructure their CLO debt falling under Volcker’s “ownership interest” umbrella. Such debt typically back […]
“Bruce Karpati, a former Securities and Exchange Commission official, is joining the giant private equity firm Kohlberg Kravis Roberts & Company as its chief compliance officer, a person briefed on the matter said on Wednesday. “Mr. Karpati, who left the S.E.C. last year for Prudential Investments, is expected to start his new job later this […]
“A textbook retirement speech blends beloved anecdotes with tired clichés. James Kidney, a trial lawyer at the Securities and Exchange Commission who recently departed the agency, offered a different style: an airing of grievances.” ‘Mr. Kidney’s farewell remarks – he pointedly criticized colleagues for “tentative and fearful” actions and implied that the S.E.C. “polices the broken […]
“A trial attorney from the Securities and Exchange Commission said his bosses were too “tentative and fearful” to bring many Wall Street leaders to heel after the 2008 credit crisis, echoing the regulator’s outside critics.” “James Kidney, who joined the SEC in 1986 and retired this month, offered the critique in a speech at his […]
“Before today, I had never heard of Jim Kidney. And I certainly hope this isn’t the last time I do.” “Kidney, a longtime trial attorney for the Securities and Exchange Commission, delivered a barnburner of a going-away speech at his retirement party last month, which has only just begun to make the rounds publicly. Thanks to the union that […]
“Here’s the best story you’ll read today out of Wall Street or Washington: Robert Schmidt’s Bloomberg News scoop on a retiring Securities and Exchange Commission trial attorney who used his farewell speech to scold his former bosses for being “tentative and fearful” when it came to going after top executives in the wake of the 2008 financial […]
“FINRA embarked on the effort by asking Wall Street to submit comments and data about current rules on advertising andmarketing, as well as those for gift-giving, according to the notices.” “Among the details FINRA wants to know is whether the rules have addressed problems they were aimed at resolving and if any of them include ambiguities.” “FINRA’s […]
“Goldman Sachs Group Inc. GS +1.16% is considering shutting down one of the world’s largest private stock-trading venues, according to people familiar with the matter.” “In conversations with market participants over the past several months, Goldman executives have broached the subject of closing its so-called dark-pool trading operation, known as Sigma X, the people said.” “Goldman executives are weighing […]
“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 […]
“A majority of private-equity firms inflate fees and expenses charged to companies in which they hold stakes, according to an internal review by the U.S. Securities and Exchange Commission, raising the prospect of a wave of sanctions by the agency. “More than half of about 400 private-equity firms that SEC staff have examined have charged […]
“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 […]
“Citigroup has agreed to pay $1.13 billion to settle claims by investors who demanded that it buy back billions in residential mortgage-backed securities. “The bank said on Monday that the pact it reached with 18 institutional investors called for Citigroup to make a binding offer to the trustees of 68 trusts it sponsored that bundled […]
“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 […]
“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 […]
(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.
“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.
“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 […]
“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, […]
“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.” […]
“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 […]
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 […]
“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 […]
“Goldman Sachs is leaving the floor of the New York Stock Exchange. “The investment bank, whose history has been intertwined with that of the downtown Manhattan exchange since 1896, is in the process of selling its “designated market-maker” unit, according to people familiar with the matter. “The noisy trading floors of the open outcry era […]
“JPMorgan Chase has named two specialists in initial public offerings as co-heads of equity capital markets for the Americas, according to an internal memorandum reviewed by DealBook on Tuesday. “The two, Michael Millman and Jeff Zajkowski, will report to Liz Myers, the firm’s global head of equity capital markets. “Previously, Mr. Millman led the equity […]
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 […]
“IEX Group Inc.’s trading platform was built to combat predatory practices. That doesn’t mean it’s on a crusade to kill high-frequency trading firms. “Chief Executive Officer Brad Katsuyama, whose firm is the subject of Michael Lewis’s new book “Flash Boys,” welcomes all kinds of traders on his five-month-old platform that’s trying to reshape the $22 […]
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