John's Feed
Nov 6, 2015

Market maker Virtu says has had no issues with IEX “speed bump”

NEW YORK, Nov 6 (Reuters) – High-speed electronic trading
firm Virtu Financial on Friday expressed its support to
regulators for upstart stock trading venue IEX Group, which has
applied to become a registered U.S. stock exchange.

IEX, the alternative trading system (ATS) at the center of
Michael Lewis’s controversial March 2014 book “Flash Boys: A
Wall Street Revolt,” applied in September with the U.S.
Securities and Exchange Commission to become The Investors
Exchange. If approved, it aims to launch as such in the first
quarter of 2016.

Nov 3, 2015

Exclusive: BATS says IEX’s ‘Flash Boys’ speed bump is unfair

NEW YORK (Reuters) – Exchange operator BATS Global Markets on Tuesday said regulators should require upstart trading venue IEX Group to amend its application to become a registered stock exchange to remove what it called an “unfair and unreasonably discriminatory” aspect.

Specifically, it questioned IEX’s use of a “speed bump” that delays incoming orders to its trading platform by 350 millionths of a second, which IEX says allows it to update ever-changing prices before the quickest market participants can act on out-of-date prices, preventing them from jumping ahead in the queue.

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.