Commentary, analysis and other offerings from Monday’s FT,
The Trading Room: In defence of high-frequency traders
After years of operating in obscurity, high-frequency traders have been thrust into the public spotlight – but much of this publicity has been riddled with errors and half-truths, leading to the demonisation of HFT, writes Justin Schack, vice president, market structure analysis, at Rosenblatt Securities. Rather than complain, however, critics would do better to adapt, so they may reap the benefits of the HFT explosion while minimising its complications and costs.
Tony Jackson: A modest proposal to keep the banks under control
Jackson is getting “seriously fed up” with the banks. They seem hell-bent on resuming business as usual, they’ll probably get their way and “we will end up with the bill again”, he warns. But wait, Jackson has a modest proposal for “bank-weary tax payers”. Read on…
Beware the ‘Frankenstein’s monster’ of UK public debt
Britain’s next government will have a prolonged struggle to reduce public expenditure relative to national income, writes Tim Congdon, chief executive of the newly established economics consultancy, International Monetary Research. If there is any good news here, it is that David Cameron seems well-prepared. The Tory leader has already warned that he expects his government to be deeply unpopular after its first year in office.
Lex: Private equity’s debt mountain
Private equity-owned companies needs to repay $400bn over the next five years Having leveraged up fast during the boom, they now need to deleverage almost as quickly. But there’s still time to stop this debt bomb from exploding in the industry’s face, says Lex.
FT.com – Ask the expert: Banking stability
Jan Randolph at IHS Global Insight will answer readers’ questions on the health of global banks and their role in shaping the future stability of financial markets, on Tuesday, Aug 3. Submit questions today.
View from the Markets, video: Regulators and trading
Joe Saluzzi, co-head of equities trading at Themis Trading, an institutional agency brokerage firm, discusses the rise in hidden liquidity in equity markets and the backlash against high-frequency trading.
Jonathan Guthrie: In defence of the authentic Cornish pasty
There is altruism and self interest in the crusade of Brian Stein, chief executive of Samworth Brothers, a large Midlands food company, to obtain EU geographic indicator status for traditional British snacks such as pies and pasties. If he gets his way, Cornish pasties would have be made in Cornwall. Anything else would be a mere pasty, shorn of authentic resonances of tin-mining.