Tag:
Price Discovery
Latest Headlines
Latest Headlines
Are there too many exchanges and ATSs?
We're getting all too accustomed to new exchange or alternatives trading system launches. From Nasdaq OMX's new PSX exchange to the BATS Y Exchange to the Direct Edge offerings, we're seeing new exchanges launched to capture niche markets with tweaked fee structures. This has been accomp
Inching toward a May 6 Flash Crash solution
The May 6 Flash Crash continues to fascinate Wall Street and its regulators. It's been six months and in the minds of many, the industry has learned a lot. Unfortunately, the precise causes of the Flash Crash remain a mystery. The controversy over the SEC-CFTC report underscores that.
All
Post-Flash Crash, a need to strictly regulate speed?
People on Wall Street and Main Street have discussed the Flash Crash ad nauseum since May 6. There have been many sound proposals discussed, like various single-stock circuit breakers and a ban on stub quotes. But there are some big near-philosophical issues that are probably worth mentioning righ
The downside of high-frequency trading
Chances are you're familiar with the arguments in favor of high-frequency trading ( high-frequency trading news)--that the practice adds liquidity, that it's performing a market making function, and so on. This is a well-reasoned position, obviously. But Themis Trading has some nuance to add to
Is internalization a bad thing?
Internalization has cropped up as an issue again, especially with the rise of low-priced, high volume stocks that pose special execution problems, especially for the big exchanges.
The Nasdaq is studying the issue--led by chief economist Frank Hatheway--and has found some evidence that too muc
How far will the SEC's review go?
It's no secret that the SEC is taking a look at high-frequency trading and other modern innovations. It's already indicated it will ban flash orders and it seems skeptical of the worth of IOIs. What appears to be happening is a wide-ranging review of the entire trading infrastructure, end-to-end.
Short interest rises on banks
Big Wall Street banks, which tend to be wary of financial markets regulation, have historically taken a pro-short-selling attitude, arguing that short selling enhances liquidity and price discovery. That changed in a big way last year when Bear Stearns and Lehman Brothers argued vociferously that
Are the shorts really to blame?
It's a tough time to be a short seller.
The view out on Main Street, fueled by the SEC's temporary ban on shorting roughly 800 stocks, is that the shorts are responsible for much of the carnage. Hedge funds, of course, are an easy target. But it's unclear where all the shorting was coming
What to make of dark pools' fast growth
There has been lots of activity in the dark pool industry as of late--from Lehman Brothers' announcement that it will align with the LSE to create a new dark pool to news of LiquidNet's planned
