Our biggest stories of the week are ...
My good mate Brett King has just posted
some really interesting analysis and stats from Google about how we
find out about loans and finances, and the search behaviours therein. The
headline data came from Google Australia, with the key trends showing a
move away from branch towards search for financial news.
What would a Microsoft - Apple merger look like?
As I waited to speak at a conference this week, someone said that I
seem to have a lot of gadgets. It’s true, I’m a gadget freak, but they
all serve a function. Recently, I’ve been assimilated into the Apple fold through the
ease of use, great user experience and simplicity of the iPhone and
iPad. Historically, I’ve been a Microsoft man, with desktop and laptop.
US Government and Financial Elites Deceive Us
I received an email from Ron Robins
the other day, wondering whether I would share some information with
the Financial Services Club community. Ron is an Englishman, now based
in Canada, who promotes the idea of ethical investing and seems to have a
slight concern over US behaviour.
Building upon last week's posts about Capital Markets, this week also focused specifically upon the Regulatory Agenda:
Part One: SEC to crackdown on HFT?
I gave my first presentation for a while last week on capital markets
and what’s top of mind. Here are the headlines of key areas of focus:
* High Frequency Trading (HFT)
* Dark Pools
* Best Execution
* Post-Trade Transparency
* Global Trading Platforms
* MiFID II
I’ll review these areas in more depth during the week, and start
today by looking at High Frequency Trading, and why layering, spoofing and other market abuses
are raising big questions over HFT.
Part Two: What was the cause of the 'flash crash'
I got into a bit of trouble yesterday, as various colleagues told me
that the discussion on the flash crash was inaccurate and full of
errors. A key issue was the discussion of flash orders being part of the
problem as, according to my American colleagues, flash orders no longer
exist in the US markets. Except that that is (a) not true and (b) there
is a clear associatio between these orders and the flash crash.
Part Three: Exactly what is and how big are 'dark pools'?
As MiFID II is under discussion, some are resisting the march of dark
pools, particularly the traditional exchanges. For example, earlier this
year, the Federation of European Stock Exchanges (FESE) said that dark
pools accounted for 40 percent of total EU equities trading. CESR say it
is more like 2%, whilst the FSA estimated 1.25%. Who’s right
and who’s wrong?
Part Four: MiFID II - the post-trade agenda
All of this week, the blog has focused upon capital markets and the
MiFID / regulatroy agenda. From a crackdown on HFT to a rethinking
of dark pool operations. As the MiFID review moves along, watch
out for post-trade too, as much of the focus will be on the failures of
interoperability in the clearing infrastructures and a lack of
transparency in post-trade.
These items build upon the postings last week about the Deutsche Börse:
- If you can't afford the tech, get out of the market
- Circuit
breakers on the Deutsche Börse - Forget
Frankfurt, I'm moving to Basildon
After the PSD and SEPA, has anything changed?
Last year, we performed a major survey in anticipation of the
implementation of the PSD and SEPA Direct Debits, to see how the world
viewed these areas. This year, we're doing it again. Click here to take the survey.
The major general news stories of the week include ...
JP Morgan eyes Lehman tower in potential snub to Government - The Independent
JP Morgan, the US investment bank, is set to ditch plans to build a new European headquarters at London's Canary Wharf, and instead move into Lehman Brothers' old skyscraper in the Docklands financial district.
Wall Street, the sequel: Goldman whacked - The Economist
TWENTY-THREE years after he first championed greed, Gordon Gekko is back. Michael Douglas reprises his role as the slick-haired financial barbarian in Oliver Stone’s “Wall Street: Money Never Sleeps”, due for release on September 24th. Half-reformed after prison, Gekko
Swift sends efficiency signal to clearers - Financial Times
Cross-border messaging system used by clearing and settlement systems to cut prices by 20 per cent
'Strip club and golf outings culture' at Goldman Sachs challenged by female staff - The Independent
Goldman Sachs discriminates against its female employees, it is alleged in a lawsuit that paints a familiar picture of a Wall Street culture that involves all-boys outings, visits to strip clubs and undervaluing women on the trading floor.
Statistics on payments – Data for 2009 – - ECB
Trader blamed for Morgan Stanley's $9bn loss back in business - The Telegraph
The trader blamed for helping to rack up a $9bn (£5.8bn) loss at Morgan Stanley as the US housing market turned sour is back in the mortgage business.
Howard Davies: The Government's mistake over London regulation - The Telegraph
Abolishing the FSA could damage the City of London, says former regulator
Bob Diamond: the case for the defence - The Telegraph
In his first interview since being named the new Barclays chief executive, Diamond talks about 'casino banks', pay and the future.
Why Stephen Green really joined the Government - The Telegraph
The coalition looks to the ex-HSBC chairman as its 'big idea' for splitting the banks falters.
Lehman Brothers begins hiring again - The Telegraph
Two years after the $613bn (£399bn) collapse of Lehman Brothers, the London arm of the investment bank is back on a recruitment drive.
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Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...
