Newswire

From September 2010 the OMFIF Newswire was integrated into the bi weekly OMFIF Commentary and complimented in late December 2010 by the OMFIF blog.

Probe results won't end ‘flash crash’ debate

US regulators investigating the ‘flash crash’ that sent stock prices plunging last May have determined that no individual deliberately tried to disrupt the market.

Whatever the role of high-frequency algorithmic trading, it seems the decentralised electronic nature of the market after structural reforms eliminated stock specialists to execute trades is also a part of the explanation for what happened. This finding may not relieve market participants.

In a profile of Gregg Berman, the former physicist leading the investigation of the incident at the US Securities and Exchange Commission, The New York Times previews the report due out in the next couple of weeks and concludes that the complex sequence of events tracked by Berman’s teams is not likely to provide closure to anyone.

It will undoubtedly lead to policy recommendations for possible fixes that may close this barn door, but with equal certainty investors will still worry that another horse will get out of another barn door not seen in this probe.

Although trained as a physicist, Berman made his career on Wall Street, devising algorithms and software to measure risk in high-frequency trading strategies. He is leading a score of investigators under the aegis of the SEC and the Commodity Futures Trading Commission.

Lawmakers are already taking sides, with Democrats led by Delaware’s outgoing Senator Ted Kaufman calling for registration of high-frequency traders, while Republicans are cautioning the agencies not to rush to a judgment about the role of high-frequency trading.

 

Issue Articles

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Issue No: 32 - 22 September 2010

Issue Select: 22 Sep 201015 Sep 201008 Sep 201025 Aug 201011 Aug 201028 Jul 201014 Jul 201030 Jun 201023 Jun 201016 Jun 201009 Jun 201002 Jun 201026 May 201019 May 201012 May 201005 May 201028 Apr 201021 Apr 201014 Apr 201007 Apr 201031 Mar 201024 Mar 201017 Mar 201010 Mar 201003 Mar 201024 Feb 201017 Feb 201010 Feb 201003 Feb 201027 Jan 201020 Jan 201013 Jan 2010

Revolving door still open between Washington and Wall Street

For all the rhetoric against Wall Street emanating from Washington, the door remains open for bankers to take top government posts.

China takes more baby steps toward currency convertibility

China continued to set the traces for further convertibility of its currency by reportedly selling renminbi-denominated bonds to central banks in Malaysia and other Asian countries.

Libyan sovereign fund stake leads to Profumo ouster at UniCredit

A 2.6% stake in UniCredit held by Libya’s sovereign fund became the wedge used by political opponents to oust chief executive Alessandro Profumo.

Probe results won't end ‘flash crash’ debate

US regulators investigating the ‘flash crash’ that sent stock prices plunging last May have determined that no individual deliberately tried to disrupt the market.

UK city explores asset sales to Middle East sovereign funds

The UK’s second-largest city, Birmingham, has reportedly been in talks with sovereign funds in Abu Dhabi and other Middle Eastern countries about a possible sale of its airport and other city assets.