"The securities laws, in large part, can be understood as a set of rules about information....
In this sense, "big data" is a continuation of an old theme. In another sense, the developments in data over the last 10 to 15 years represent a wholly new phenomenon, in the same way that satellite imaging is completely different from surveying a landscape from the top of a hill. At that scale, patterns become evident that would have been impossible to piece together by considering one plot at a time."
"So much leverage in the United States has been taken out of the financial system," Eisman said. "I don't think you can say the same thing about Europe, unfortunately." (Nov 2)
If it walks like a dealer and talks like a dealer, sometimes it's actually an unregulated trader that is also a terrible cliche (Oct 28)
The fintech sandbox
Some regulators skeptical
(Oct 3) Comptroller of the Currency Thomas Curry is the most recent regulator to reject relaxed-rules "sandboxes" to promote technological innovation in financial services. "Some of the discussion about pilots [of new products] is whether regulators should create a 'safe space' to allow companies to try out new products and processes without the risk of penalty if the trial runs afoul of consumer protection laws or other regulations," Curry said in a speech at Chatham House, home to the Royal Institute of International Affairs, a prominent London think tank. "I do not support this approach," he said. Federal Reserve Governor Lael Brainard said on Oct. 7 in Washington that it would be "premature" to consider a sandbox for one fintech innovation in particular - distributed-ledger technology, aka blockchain - because the field is in its infancy.
(Nov 2) The Securities and Exchange Commission has pushed the deadline to December 21, from November 6, according to a filing. In September, the Chicago Stock Exchange (CHX) sought permission to add a 350-microsecond time delay to certain orders. The request had divided traders. Virtu backs it. Hudson River Trading and Citadel Securities do not. CHX's request followed SEC approval of IEX Group's speed bump for all orders on its Investors Exchange. CHX's proposed delay is different: the 350-microsecond pause would only apply to trades executed against resting orders.
(Nov 1) The Securities and Exchange Commission's Division of Economic and Risk Analysis made available additional economic analysis related to the commission's proposed rule regarding the use of derivatives by registered funds and business development companies. The analysis is part of the comment file for the rule proposed in December 2015 designed to enhance the regulation of the use of derivatives by registered investment companies, including mutual funds, exchange-traded funds (ETFs) and closed-end funds, as well as business development companies. The proposed rule would limit funds' use of derivatives and require them to put risk management measures in place.
Traders have yanked billions of dollars from the biggest corporate-debt exchange-traded funds in the past week. While some big flows in and out of these funds can be hard to interpret
, these appear to stem from a real shift in sentiment.
