Don Bollerman, IEX co-founder and head of markets & sales, reveals that so-called "speed bumps" exist inside other prominent stock markets and how certain venues have their own methodology for throttling order flow.
In light of the recent difficulties with China's stock market circuit breakers, are U.S. equity market breakers adequate?
- They need further tweaking
- Scrap them and start fresh
Despite regulatory reforms, volatile markets, and debate about potentially radical changes to market structure in 2015, headline commission rates paid by institutional investors on global equity trades held steady during the 2014 to 2015 time period, according to market consultancy Greenwich Associates.
An upstart stock market wants to bring the fight against the flash boys to Europe.
The buyside likes exchange traded funds despite last Augusts ETF market meltdown. And one consultancy said there are five drivers behind traders affinity for the instruments.
Commissioner Scott O'Malia of the Commodity Futures Trading Commission (CFTC) is on a mission. He says the process of writing new over-the-counter derivative contract rules needs more transparency. Over the past year he has repeatedly called for more roundtables and public comment on how rules are written. Why is this important? Because these rules, among other things, will determine which OTC derivative contracts must go through a clearing process and which ones can continue to use the old bilateral, dealer-to-dealer model.
Fresh-faced yet experienced graduates are entering investment firms in strong numbers. Traders looks at this crop of bright young things and the new skills and placing new demands on the buyside.
Some unintended consequences from the credit crisis of 2008 and the regulations that followed have come to light. Also, buyside firms are gathering their traders to rate the research and execution services from the sellside in relentlessly thorough scoring sessions.
High-frequency traders and supporters claim that HFT is helpful to the equity market. The data presents a starkly different story.
Once the fight for new regulations settled down, an unintended victor has emerged: the data and data systems used by today's traders.
Over the past year, the liquidity in emerging currencies grew in fits and starts quarter to quarter. Traders asked FX veterans for their outlook on the next 12 months.