Monthly Archives: October 2013

Commentary this week in the Bond Buyer (H/T Marc) focuses on the real value of technologies such as XBRL. Transparency reduces risk, which reduces the rates paid by issuers of debt. If the market understands you better, you don’t have to pay a penalty.

It’s that simple, folks. The breakeven for tagging financial accounts is a few basis points, after that the savings goes straight to providing more services to your community.

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SEC’s White: Wrong On Extractive Industries Rule

Seal of the U.S. Securities and Exchange Commi...

SEC Commissioner Mary Jo White, in a speech this week, had this to say about Dodd-Frank section 1504 rules.

But other mandates, which invoke the Commission’s mandatory disclosure powers, seem more directed at exerting societal pressure on companies to change behavior, rather than to disclose financial information that primarily informs investment decisions.

Sorry, that is wrong. Previous in the same speech, White recaps a previous rule-making exercise. Continue reading SEC’s White: Wrong On Extractive Industries Rule

HFT: Eurex Rule Shows How To Fight Spam

Eurex

My position is that some forms of high frequency trading (HFT) are pernicious spam. Flooding the wire with orders, and then cancelling those orders a millisecond later is a good example. The algorithm behind these instructions does not actually want to trade at any or all of these prices. It is trying to discover the behavior of other algorithms currently in the market, or push the market in a particular direction. These algorithms are like Nigerian princes selling penis enlargement pills. They are spammers. Now someone is doing something about them. Continue reading HFT: Eurex Rule Shows How To Fight Spam