By David Sheppard and Jonathan Stempel
U.S. regulators claimed their first victory in a four-year old effort to
crack down on oil market manipulation on Thursday, announcing a $14 million
By David Sheppard
U.S. President Barack Obama's bid to dampen the influence of oil
speculators by having regulators set trading margins could backfire,
potentially making prices even more volatile and leaving...
By Meera Louis
Jobs Data Simultaneous Release Jeopardized Under Curbs
The U.S. Department of Labor said it can't promise journalists they will be
able to transmit market-sensitive economic releases at exactly the...
By Tom Polansek
* CME executives meet with Eurodollar options traders
* Independent traders boycotted open outcry pit on Friday
* No changes made to rules on "block trades"
CHICAGO, April 16 (Reuters) -...
In October of 2011 the NYSE had submitted a rule change to the SEC which
would (a) "codify certain trading floor functions that may be performed by
DMM's", and (b)...
ALGORITHMIC TRADING MAY SPUR VOLATILITY, MISPRICING, TURNER SAYS
By Ben Moshinsky
The rise of algorithmic trading may cause markets to be more volatile and securities to be mispriced, Adair Turner, chairman of the U.K.'s Financial Services Authority will tell a U.S. audience today.
Regulators should also question whether high-frequency trading "can possibly deliver significant positive social value" by pricing securities at intervals of nano-seconds, Turner will say, according to prepared remarks for a speech at Johns Hopkins University in Baltimore. "There must be at least some danger" the rise of computer-driven trading results in increased volatility, according to Turner.
High-frequency traders have come under increased regulatory scrutiny following the so-called flash crash in May 2010, during which the Dow Jones Industrial Average (INDU) briefly lost almost 1,000 points. A proposed European tax on financial transactions could cut high-frequency trading by as much as 90 percent "in some market segments," Manfred Bergmann, a European Commission official, said last year.
It's unclear what "positive social value high-frequency trading delivers, and if it delivers no value, but makes its individual traders richer, then some subtle and unnecessary rent extraction process is at work," Turner said in the speech text provided by the FSA.
The practice is used in strategies where how fast a trade is executed may be critical to profitability, which include electronic market making and statistical arbitrage.
Empower farmers and ranchers to connect communities through social media platforms.
An engaged community. A collective voice. A chance for agriculture
to work together on a common issue-led by farmers.