Week InReview
Friday | Feb 9, 2018
Let's recap
In case you missed it . . .
More than 400 ETPs use derivatives to generate outsized returns; 'the greatest disasters in finance made the same mistakes' (Feb 8)

A map to the underworld: $2 trillion of volatility trades here
Products tied to market swings put in spotlight amid selloff; inverse VIX ETPs grew in popularity with short-vol trade (Feb 7)

A warning sign behind the market swings
The economy is still abnormally dependent on low interest rates and richly priced assets (Feb 7)

Bond market's debt-ceiling alarm bell is ringing loud and clear
In the $2 trillion Treasury-bill market, where the U.S. government turns for short-term funding, investors are showing they're plenty nervous about the approaching deadline to raise the nation's debt ceiling (Feb 4)

This SEC rule makes no sense for big banks
The automatic bar from private placements is a wild non sequitur (Feb 4)
The Cyber Cafe
Cybersecurity news every Friday
How a company founded by ex-spies uses AI to fight hackers
British cyber security firm Darktrace is using artificial intelligence to create a "cyber immune system."

Cybercriminals: The other professionals viewing your LinkedIn profile
When you view LinkedIn through the eyes of a cybercriminal, you quickly see how its features, and more importantly your data, could be used against you.

Shielding valuable IIoT data with VPNs
Centrally managed virtual private networks are an effective start toward industrial internet of things cybersecurity. The benefits of remote VPNs include the ability to authenticate, patch and update devices without being on-site.
Cryptocurrency, initial coin offerings
Among top SEC exam priorities
(Feb 7) -- Cryptocurrency developments and initial coin offerings will be among the Securities and Exchnage Commission's top examination priorities this year. Examiners will monitor cryptocurrency sales and, where sales represent securities offerings, examine for regulatory compliance, according to an SEC Office of Compliance Inspections and Examinations report. OCIE will focus on whether financial professionals involved in ICOs and other cryptocurrency sales take appropriate steps to prevent theft. The office will also make sure investors get adequate disclosure about the risks involved with cryptocurrency investments, including price volatility and potential fraud.
Binge reading disorder
Hand-curated, chosen with love
Buzzwords to know as the markets keep on bouncing: QuickTake
Perhaps the only thing more puzzling than the recent market swings are the terms being used to describe the more technical side of what's going on. Here's a guide to some of the most pertinent.

Are hackers to blame for brokerage outages? ThousandEyes thinks so
Online brokerages from to Betterment suffered outages earlier this week as investors sold off stocks in droves Monday and then got back into the market Tuesday. While the online brokerages cited huge trading volumes for the disruptions, all of which were temporary, network monitoring company ThousandEyes thinks something more nefarious is going on.

Why currency traders kept their heads while others lost theirs
Emerging markets and havens were remarkably unscathed by the blitz of stock selling.  Was this a rare outbreak of  sangfroid among currency traders, or was something else at play?