Week InReview

Those crowdsourced, DIY quant trading platforms 

"The bet of quantitative-retail platforms is that, if extensive real-time data from financial marketplaces is available to anyone, anywhere, with the talent to write algorithms, might we be living in an era where a smart kid in Bangkok with a mathematical bent and a modest grasp of JavaScript can attract investors in the way that a Wall Street investment bank can?"

Fri Apr 7, 2017
Let's recap
In case you missed it . . .
An SEC rule that helps investors get the best price for their stock orders may disappear under a market-wide pilot program a commission advisory panel is considering. (Apr 6)

What 'Bring Back Glass-Steagall' means to left and right 
Investment banks would love to be rid of the Volcker rule and their bank holding company status (which Dodd-Frank's 'Hotel California' provision prevents). They would also like lower capital requirements and to shed Fed supervision. (Apr 6)

DOL fiduciary rule: officially delayed for now, with more to come
It's possible the Department of Labor wanted to send a serious and conservative message at this stage, but will remain open to further delay of the rule in its entirety. As of now, the DOL has established a timeline in the final rule granting the delay. (Apr 5)

Window closing for Republican stealth assault on U.S. regulations
The clock began running out this week on a strategy that has provided U.S. Republicans in Congress with their only notable legislative successes this year: aggressive use of an obscure U.S. law known as the Congressional Review Act.  (Apr 5)

Crisis-era lesson on lofty ratings returns in property bonds
Investors warned in 2014 of looser criteria on CMBS grades; some credit firms now lowering their ratings on property bonds. (Apr 5)
The Cyber Cafe
Cybersecurity news every Friday
IT leaders share how they quell cybersecurity attacks
Three IT executives discuss their greatest cybersecurity fears and some of their favorite tools they use to quell them.

Cybersecurity experts hunting for hackers
Network security professionals are turning to an emerging concept known as "cyber threat hunting" to ferret out hackers from critical systems, said one expert.

Cybersecurity IQ: Americans Receive Mixed Results
They recognize the need for strong passwords and know that public wi-fi hotspots may not be safe for online banking or e-commerce; b ut U.S. adults are not as good at recognizing email "phishing" schemes or determining if the web site where they're entering credit card information is encrypted.
Fiduciary rule lawsuits
DOL continues undefeated streak
(Apr 5) -- A federal appeals court refused to temporarily block the Department of Labor's fiduciary rule pending appeal.  The U.S. Court of Appeals for the Fifth Circuit in New Orleans denied the U.S. Chamber of Commerce's request for an emergency injunction blocking the Obama-era retirement advice rule.  Every judge to have considered the fiduciary rule has upheld it in its entirety. The DOL recently changed the rule's applicability date from Apr 10 to Jun 9. The court's brief decision included no legal reasoning.
Prepare to supply liquidity
BIS to central banks
(Apr 6) -- Central banks need to prepare during calm times to provide liquidity assistance in times of stress, the New York Fed's William Dudley  wrote in the preface to a Bank for International Settlements  report Designing frameworks for central bank liquidity assistance: addressing new challenges which sets out eight principles:
  1. Allocation of responsibilities ahead of time
  2. Share information ahead of time
  3. Identify jurisdictional constraints on liquidity provision ahead of time and consider how to manage that
  4. Communicate ahead of time and during crises with other central banks regarding judgements on solvency
  5. As liquidity provision would generally be secured against collateral, and that could be in other countries, central banks should develop arrangements to lend against such collateral
  6. Central banks should consider the need to assess the nature and size of potential demands for foreign currency
  7. Need to have balance between the need for transparency and accountability, and the risks of premature disclosure
  8. Central banks should seek to better understand the implications of the evolution of market-based forms of financial intermediation
Binge reading disorder
Hand-curated, chosen with love
Nom nom nom.
Corporate tax reform, explained with a cartoon about sandwiches.
- Vox

The traditional think tank is withering. In its place? Bankers and consultants.
How the private sector is taking over policymaking.

Science says parents of successful kids have 17 things in common.
While there isn't a set recipe for raising successful children, psychology research has pointed to a handful of factors that predict success.