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Oct 8, 2015

Clinton courts left with promise to break up risky banks

NEW YORK/WASHINGTON, Oct 8 (Reuters) – U.S. Democratic
presidential hopeful Hillary Clinton on Thursday called for the
breakup of large banks that take excessive risks as part of a
sweeping plan to curb what she says are Wall Street abuses.

Under the proposal, large financial firms would need to
demonstrate to regulators that they can be managed effectively,
with appropriate accountability, across all of their activities.
If they fail to do so, regulators would have the power to make
them reorganize, shrink, or break apart.

Oct 8, 2015

Clinton proposal calls for breakup of ‘too-big-to-fail’ banks

NEW YORK (Reuters) – U.S. Democratic presidential hopeful Hillary Clinton on Thursday introduced a plan to curb what she called Wall Street abuses, including a “risk fee” on the largest financial institutions and breaking up banks considered “too big to fail.”

Under the proposal, Clinton would charge a yearly “risk fee” on a sliding scale on the liabilities of banks with more than $50 billion in assets along with other institutions overseen by financial regulators, her campaign said.

Oct 5, 2015

Luminex ‘dark pool’ enlists 73 members ahead of trading launch

NEW YORK (Reuters) – Luminex Trading & Analytics LLC, the upstart private stock trading venue owned by nine large investment managers, said on Sunday it had signed up more than 70 institutional investors ahead of an expected trading launch in early November.

Luminex plans to only allow institutional investors, such as mutual fund companies, to trade on its platform, snubbing the broker dealers and proprietary high-frequency trading firms that own and generate much of the trading in other private trading venues.

Oct 1, 2015

Wall Street says ready if Joaquin hits New York

NEW YORK (Reuters) – Wall Street has a new risk on its radar: Hurricane Joaquin.

The Category 4 hurricane, now pummeling the Bahamas, is the first major storm to threaten the U.S. East Coast since Superstorm Sandy devastated New York and New Jersey in October 2012.

Oct 1, 2015

BATS says to pay ETF issuers to list products on its exchange

NEW YORK, Oct 1 (Reuters) – BATS Global Market Holdings Inc
said on Thursday it would pay exchange-traded product issuers to
list their products on its exchange as it attempts to become the
No. 1 U.S. listing venue for the popular securities.

The exchange operator told Reuters in March that it aimed to
become the largest listing venue for ETPs such as
exchange-traded funds and exchange-traded notes, within three to
five years.

Sep 30, 2015

SEC Commissioner calls for shining light on ‘dark pools’

By John McCrank

(Reuters) – More transparency is needed in the U.S. stock
market to help restore investor confidence and bring greater
clarity as to how the market functions, a top member of the
Securities and Exchange Commission said on Wednesday.

While markets have become more automated and efficient, they
have also become so complicated and fragmented that complex
products and market strategies are often not well understood by
investors, the public and regulators, said Democratic SEC
Commissioner Kara Stein.

Sep 30, 2015

SEC fines high-speed trading firm Latour for rule violations

By John McCrank

(Reuters) – The U.S. Securities and Exchange Commission said
on Wednesday that Latour Trading LLC would pay more than $8
million to settle charges that the high-frequency trading firm
violated rules aimed at ensuring safe and efficient markets.

Latour, a unit of Tower Research, sent out millions of
non-compliant orders to U.S. stock exchanges, many of which were
executed at worse prices than were available elsewhere, between
October 2010 through August 2014, the SEC said.

Sep 18, 2015

ConvergEx to close one of its two ‘dark pool’ trading venues

NEW YORK (Reuters) – ConvergEx Group LLC [BNYCG.UL] will close one of its two private stock trading platforms, or “dark pools,” as of Oct. 1, the agency-focused brokerage told clients in a note, citing greater demand for the platform it will retain.

A dark pool is a type of alternative trading system (ATS) where trading information is kept secret until the trade has been completed.

Sep 16, 2015

“Flash Boys” heroes at IEX file to become a U.S. stock exchange

Sept 16 (Reuters) – Upstart trading venue IEX Group said on
Wednesday it filed to become a registered U.S. stock exchange
and if approved by regulators, will begin operating as The
Investors Exchange in the mid- to late-first quarter of next

IEX, which launched October 2013 calling itself a fairer
market for investors, would be the 12th U.S. stock exchange,
competing against more established market operators such as BATS
Global Markets, Nasdaq Inc, Intercontinental Exchange
Inc’s NYSE unit.

Sep 3, 2015

Stock volatility, ETF rise drive rethink of post-flash crash U.S. rules

NEW YORK (Reuters) – U.S. regulators and stock exchanges are re-examining rules designed to ensure orderly trading in equities after investors fell afoul of them during a near-unprecedented bout of volatility at the beginning of last week, exchange officials said.

The measures, which include pausing trade in individual stocks if their prices move violently in a short time, were introduced after the 2010 flash crash when around $1 trillion in paper value was temporarily wiped from U.S. stock markets within minutes.