The International Securities Exchange (ISE) announced this week that it is introducing a new order type called “Do not route” (DNR). Both “priority” and “professional customers” will be able to designate an order DNR so that it would not be routed to another exchange if the ISE is not posting the National Best Bid or Offer (NBBO).
Posts Tagged ‘SEC’
Managing regulation
Wednesday, July 21st, 2010Financial reform is law, but what happens now?
Wednesday, July 21st, 2010President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law today, but this is far from the end of the road in financial reform. In fact, it’s just the beginning of a longer process, and the devil is definitely in the details. The law gives most of the power to the regulatory agencies to actually make the rules, a process that could take up to a year, analysts say. And a history of lack of cooperation and regulatory overlap in some financial products from the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) only complicates matters. Many experts still aren’t sure of the exact ramifications of the law. (more…)
OTC derivatives: Growth and change
Tuesday, June 22nd, 2010The over the counter (OTC) derivatives market has come under pressure in the aftermath of the economic meltdown and subsequent increased regulatory challenges. However, according to a new study by Aite Group, OTC asset classes are experiencing growth again, with growth in the credit default swaps (CDS) market outpacing other asset classes. According to the report, the drivers of this growth included a steady need for derivatives during the credit crisis and the development of central counterparties by exchanges to clear CDS. (more…)
Volatility central
Thursday, June 3rd, 2010Regulators and the exchanges are reacting to the May 6 “flash crash” with investigations and products designed to protect investors in today’s volatile markets. Yesterday, Nasdaq said in the third quarter of 2010 it will launch Nasdaq Volatility GuardSM, a single stock circuit breaker which will pause trading based on predetermined thresholds across all Nasdaq-listed securities.
Complexity, but for what purpose
Thursday, April 29th, 2010Throughout the day of congressional hearings with Goldman Sachs officials this week and in countless news stories, editorials and blogs we keep hearing the word “complexity” when referring to the Abacus 2007-AC1 collateralized debt obligation (CDO) at the heart of the Securities and Exchange Commission’s (SEC) case against Goldman. Albert Einstein is credited with the phrase, “make things as simple as possible but not any simpler.” Basically it means make things clear but do not leave out material details. Some things, rocket science for one, are complex by their nature. But what is the purpose of the complexity of something like the Abacus CDO?
Have the mighty fallen?
Wednesday, April 21st, 2010On the heels of putting up the new Futuresmag.com Poll Question, which asks who will win the Goldman Sachs/SEC smack down , I received results from a survey done by the Argyle Executive Forum, a firm that holds leadership conferences for senior executives, asking a similar question to their clients. I found Argyle’s survey results, especially with its clientele, a bit surprising. The question was:
The emperor’s new clothes
Monday, April 19th, 2010I guess my first reaction to the news of Goldman Sachs being charged with fraud was cynicism. Not that I doubted they were capable of it but that I doubted the Securities and Exchange Commission (SEC) was capable of actually finding anything of substance. Perhaps that is unfair but we are talking about the agency that could not discover the Bernie Madoff ponzi scheme when it was delivered to them on a silver platter 10 years before it blew up.
Say that again, you must be joking
Thursday, January 21st, 2010Back in March we wrote about the report “Sold Out: How Wall Street and Washington Betrayed America,” published by Essential Information and the Consumer Education Foundation. The report stated that $5 billion in political influence purchasing in Washington over the past decade had led to our current economic collapse.
The report was anything but shocking as the influence of big money on public policy is no secret. Many depression era reforms were struck down in the past decade, which allowed among other things the merger of commercial and investment banking and an increase in the amount of leverage financial institutions could utilize.
