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’The future is all about cross-asset arbitrage
What happens when computer-driven trading reaches a high-speed saturation point?
That is, when high frequency trading reaches its natural limit — it simply cannot get any faster?
The answer is multi-dimensional arbitrage.
Some smart – but conflicted – routers
A block trade, born in a US-based pension fund, is traveling the electronic execution highway.
The trade — let’s call him Benny — is sent to the fund’s broker for execution. That broker, now sitting in his office in New York,
Don’t be surprised if NYSE volumes drop
… on account of Citigroup’s reverse share split.
Jeffrey Rubin at Birinyi Associates points out on Thursday that so far in 2011, Citigroup has on average represented 11 per cent of the entire daily volume of the New York Stock Exchange.
Your chance to quiz CME Group
If you’re keen to find out more about the causes of this…
You might be interested in this.
FT Energy Source is asking for your questions to Terry Duffy and Craig Donohue, the chairman and chief executive of CME Group,
Primary concerns with secondary markets
Secondary transactions — sales of private stock by company shareholders via private exchanges or placements — have received increased attention in the last few months.
And for good reason. NYPPEX numbers obtained by FT Alphaville claim that the secondary market for privately held companies is worth $9.6bn in 2010,
A gazillion more CDS trades
All hail the Depository Trust and Clearing Corporation
The DTCC has provided an updated and more in depth version of its market “snapshot” of CDS trade — six-month data for the top 1,000 CDS single-named reference entities.
Japan’s shiny new ‘financial nation’
After moves to sex-up Japanese government bonds and make debt-reduction a priority of his economic agenda, Japan’s new prime minister Naoto Kan is clearly out to show he means business.
On Friday, his government unveiled a proposal to merge the country’s main stock exchanges by 2013,
Biggest stocks to get circuit-breakers, Reuters says
The first tangible exchange response to the Flash Crash may be imminent, Reuters reported on Tuesday, citing ‘sources’ on plans to set up circuit-breakers to prevent sudden slides in key stocks.
Flashes (excuse the pun) via Reuters:
Nasdaq, NYSE testimony on the flash crash
Talk about insta-outrage: less than one week after last Thursday’s ‘flash crash’, US lawmakers have organised a hearing on the roots of that sudden, short-lived stock market plunge.
The House Financial Committee on Financial Services,
BarCap on that flash crash: ‘a perfect storm’
Regulators, politicians, media types, investors and exchanges are still trying to figure out just what happened to cause that sharp, sudden and scary plunge on Wall Street last Thursday.
Now analysts at Barclays Capital have weighed in:
The LSE makes history (updated)
The London Stock Exchange chalked up a fresh milestone on Tuesday – but probably not one its executives will want to remember.
From Bloomberg:
March 23 (Bloomberg) — London Stock Exchange Group Plc’s share of FTSE 100 Index stock transactions fell below 50 percent for the first time in intraday trading as Europe’s oldest independent bourse lost more ground to alternative trading systems.
Guest post: Prof Craig Pirrong on moves to overhaul to the derivatives market
Lawmakers in DC are due to resume debate on major financial reform legislation currently working its way through the US House of Representatives. One closely-watched aspect of that debate is sweeping overhaul of over-the-counter derivatives markets.
Broker calls for OTC rethink
Plans to force over-the-counter trading of derivatives on to exchanges to reduce counterparty risk need to be rethought by regulators, according to the Asia head of one of the world’s biggest brokers. Pierre Gay,
‘A gold rush moment’ for HFT
Unless you’ve had your head buried in the sand, you’ll know high frequency trading stormed onto the mainstream agenda this summer, catching the critical eye of the international press, public and regulators alike.
LSE goes for Turquoise
It’s like Xavier Rolet came into the job of chief executive at the London Stock Exchange and said: “Right, here’s the strategy. Everything that Dame didn’t want to do, we do. Every opportunity she shunned,
Why are regulators afraid of the dark?
Dark pools, that is.
Craig Pirrong — a professor of finance at the University of Houston, but known round these parts as the Streetwise Professor — mounted an argument in defence of dark pools on Tuesday.
CME abandons plan to trade OTC derivatives
In a not entirely unexpected move, CME – the world’s biggest futures exchange by volume – and Citadel abandoned their joint effort to set up a trading platform for credit derivatives.
Still, and optimistically, CME said it would continue to push its CDS clearing effort,
A vision of trading from 1995
Here’s an interesting vision of investing from 1995 as penned by Peter Bennett, an electronics engineer, designer and developer of information and trading systems for financial exchanges. It was featured in the World Handbook of Stock Exchanges that year.