‘Regulation’ Algorithmic Trading Articles & Financial Insight
- What is an algorithm? Financial regulation in the HFT era
SUBSCRIBERS ONLYRegulators are increasingly concerned with automated trading and its potential risks. Can they learn something from the algorithm tagging rule in Germany's High Frequency Trading Act?
- Supplemental proposal to regulation AT: What traders need to know
Supplemental Proposal to Regulation AT: What Traders Need to Know by J.P. Bruynes and Libbie Walker. The CFTC is revisiting some of its most controversial proposals on regulating algorithmic trading, most notably which market participants will be subject to regulation and CFTC access to proprietary source code.
- JWG regulatory trading digest - MiFID II technical standards published
After months of waiting ESMA has published the long-awaited MiFID II Technical Standards, leaving implementation teams across the industry with hundreds of pages to get to grips with. The much delayed Technical Standards were largely met with relief from an industry nervous about meeting the 3 January 2017 implementation deadline.
- JWG regulatory trading digest
The G20's 2009 Pittsburgh plan, which was designed by world leaders to ensure that another global financial crisis would be avoided, has recently had its fifth birthday. Five years on, despite the over 50,000 pages of regulation that we have seen published since 2009, regulators across the globe still have a long way to go to finish implementing the full plan.
- JWG regulatory trading digest - The end of the beginning: conclusions from Paris
This month, ESMA hosted a broad cross-section of market participants for a final 'hearing' on the MiFID II technical standards they will send to Brussels for approval this summer. Of course, many attendees were surprised to find that, while they were en route to Paris, another 355 pages of MiFID II technical standards consultation were issued for comment by 20 March.
- JWG regulatory trading digest
According to data compiled by the Wall Street Journal, Reuters and The Huffington Post, since 2009, tier one banks have paid at least $128 billion to regulators in the US and Europe. Here at JWG we decided to do our own research into these astronomical figures, and we discovered that this, in fact, only tells part of the story. When we factor in the associated costs connected with these fines, such as legal fees and losses made by firms from the forced sale of assets, the price tag for the industry increases substantially to total well over $260 billion globally in the 2009 to 2014 period
- Germany leads, EU follows?
SUBSCRIBERS ONLYGermany's HFT Act has had implications for how the European Union is managing legislation. Intended to provide trade surveillance and identification of light speed traders, the legislation faced a bumpy ride initially. As financial markets watchdog ESMA crafts the MiFID II reforms, the industry is responding to attempts at harmonisation, putting the mechanics of the Act front and centre. Rochelle Toplensky examines the evolving landscape.
- JWG regulatory trading digest
SUBSCRIBERS ONLYRecord fines have been dominating the headlines in the US, as the federal government appears to have finally hit the brakes on Dodd-Frank rulemaking. In July, BNP Paribas reached an $8.97 billion settlement with the US Justice Department (that also took it out of the market for 12 months) for breaching sanctions on Sudan, Iran and Cuba. However this was subsequently dwarfed in August as Bank of America agreed to pay a cross-jurisdictional record fine of $16-17 billion for mortgage related misconduct in the run up to the financial crisis.
- The Paper Chase - Implications of a tough approach to trade transparency
SUBSCRIBERS ONLYThe US had paved the way with the start of swaps market reporting as called for under Dodd-Frank. Yet even with the benefit of that experience, the introduction of OTC derivatives reporting in Europe is proving to be a formidable test for trading firms and for the regulators themselves. Rochelle Toplensky reports.
- Regulators grappling with market data: a case study
SUBSCRIBERS ONLYRegulators and trading firms have at least one thing in common: they both find grappling with the torrent of data generated in today's markets a tall order. The CFTC is just beginning to wrestle with the flow of swaps data, while the Securities and Exchange Commission has a head start on the equities side. It has deployed MIDAS, the Market Information Data Analytics System, developed by Tradeworx. Automated Trader met Gregg Berman, senior advisor to the Director at the SEC's Division of Trading & Markets, to find out how the regulator hopes to develop the MIDAS touch.
- The rise of the Texan sharpshooters?
SUBSCRIBERS ONLYThere is a story about a Texan who fires a bunch of shots at the side of a barn. Once he's done shooting, he walks over to the barn, paints a target centred on the biggest cluster of shots, and calls himself a sharpshooter. So what, you may ask, does this have to do with swaps regulation?
- The $650 trillion question: Navigating the OTC market maze in a new regulatory era
SUBSCRIBERS ONLYMiffed about MiFID II? Think Dodd-Frank should be more appropriately named Dead-Frank? Whatever side of the Great Regulatory Debate you're on, the next few months are likely to go down as one of the more crucial periods in modern financial history for OTC markets. Adam Cox and Tarryn Riley spoke to a host of players to get the low-down.
- High Frequency Trauma - What unintended consequences are in store as regulators target HFT?
SUBSCRIBERS ONLYProposals to regulate automated trading have been coming thick and fast. Bob Giffords, with the help of a host of market participants, peers into a crystal ball to see what some of the side effects could be if any of these ideas were adopted, and whether the market has cause for concern.
- Can a little Foresight go a long way for the algo industry?
SUBSCRIBERS ONLYNearly 100 years ago, the American lawyer Louis Brandeis told a popular magazine: "Sunlight is said to be the best of disinfectants". A phrase was coined. The words went on to become a rallying cry for journalists and anti-corruption campaigners, but they may also resonate with a less obvious group: algorithmic traders.
- The Day of the MiFIDs
SUBSCRIBERS ONLYSuch was the success of the first Markets in Financial Instruments Directive (MiFID), that they’re preparing a second to tighten up the areas in which the real world failed to align itself with the regulatory vision. The regulators are determined that the real world will not fail again, and here, David Dungay examines the scale of the task that confronts them. How much work still needs to be done, and how will Europe’s visionaries enforce happiness and harmonious trading upon us now and for evermore?
- Saved by the bells?
SUBSCRIBERS ONLYIt’s not every MTF in Europe that has its own bell to sound the start of trading, but much of the comment on MiFID’s first year does have a celebratory ring to it. William Essex goes in search of harmony in a fragmented market.