Author Archives: Derek Klobucher
Dodd-Frank Stands Technically Corrected and Small Banks Lose
“People got a bit lax,” Queen Elizabeth II said last week of the time leading up to the financial crisis. “Perhaps it was difficult to foresee.” The U.K.’s monarch also lamented that her nation’s Financial Services Authority “didn’t have the teeth” to curb risky business through 2008. And dental enhancements for global banking regulators continue [...]
Lighting Up Dark Pools And Dissing Dodd-Frank
Shadow banking may sound like the demon brainchild of Dr. Evil and Gordon Gekko, but about half of the banking system’s assets are in this mostly unregulated realm of finance. And global regulators at the Financial Stability Board recently looked at taming that realm. Liquidity buffers, leverage limits and standards on how to make calculations [...]
Regulatory Reform: It’s The System, Not The Software
Trading stood still on more than 200 companies Monday, as a server kept the Stock Exchange from publishing quotes for most of the day. Taken alone, this seems like a technical glitch. But combined with earlier problems, such as Knight Capital in August, in May, BATS in March and other issues this year, the glitch [...]
Spending Wisely On A Big Data Strategy
Capital markets firms are falling behind in Big Data as industries from utilities to manufacturing successfully employ enterprise-class solutions to improve operations. But capital markets firms aren’t keeping up either because they’re too new on the block or because compliance drains their coffers, according to TABB Group’s Paul Rowady. “ in new technologies and solutions is [...]
Dodd-Frank And The Global Culture Change
Author’s Note: Happy Veterans Day! “The impact of Dodd-Frank for foreign banks is going to be widespread and long-lasting,” according to a recent report by Boston-based research and consulting firm Celent. “The new rules would alter the trading strategies and operations of most of the large swap trading firms globally.” U.S. firms would see less [...]
Not-Ready-for-Real-Time Players Handicap Themselves
Three in five financial institutions cannot perform real-time reconciliation because they haven’t started working on it for any of their asset classes, according to a recent survey. And they don’t think they’ll be ready to start work on this regulation-essential project before the end of next year, stated the survey by London-based software solutions provider [...]
Europe Takes Control Of High-Speed Trading
The European Parliament’s financial committee decided last week to rein in the velocity of high-frequency trading. The Economic and Monetary Affairs Committee’s unanimous vote paves the way for a half-second speed limit on those using computers to execute lightning-fast stock deals. “All market players and trading venue operators would be required to lay down clear rules and [...]
Looking For Perfect In The Trading World
Stricter risk controls are necessary at all levels of the high-frequency trading cycle, according to the Federal Reserve Bank of Chicago this week. HFT firms aren’t employing risk controls endorsed by industry and regulatory bodies, the bank’s study found, and algorithms run amok more often than expected. Kill switches that terminate trading at certain levels, as [...]
Romney’s Devil in Dodd-Frank’s Details
If any publicity is good publicity, the Dodd-Frank Act got a healthy shot in the arm from the two candidates for U.S. president during their first debate on Wednesday, with each contender discussing financial regulation at length. “You have to have regulation, and there are some parts of Dodd-Frank that make all the sense in the world,” [...]
Restoring Profits And Confidence With Big Data
“Retail and commercial banks should be simple and they should be boring,” Lloyds Banking Group’s chief executive said last week. “The industry must change,” António Horta-Osório told the CBI Scotland annual dinner. Tempting as it may be for the capital markets to laugh at such navel gazing four years after the financial crisis began, Horta-Osório’s [...]
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