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May 18, 2015

Polish bourse eyes speed traders as U.S. approves futures contract

NEW YORK, May 18 (Reuters) – The Warsaw Stock Exchange
has been cleared by U.S. regulators to make futures
contracts based on an index of Poland’s top public companies
available to U.S. investors and high-speed trading firms, an
exchange executive said on Monday.

The move could attract more automated trading firms that use
arbitrage strategies to profit from fleeting disparities between
the prices of the futures contracts and those of the underlying
securities, said Grzegorz Zawada, vice president of WSE’s
management board.

May 14, 2015

U.S. SEC advisory panel begins review of stock market regulation

May 13 (Reuters) – A raft of suggestions to help make U.S.
equities markets fairer and more efficient were on the table on
Monday as an advisory panel kicked off its first meeting by
presenting regulators with what some called a long-overdue
review of market rules.

Issues like the cost of trading on exchanges, trading
incentives and broker standards, were discussed by the U.S.
Securities and Exchange Commission’s Market Structure Advisory
Committee at its day-long meeting in Washington, D.C. The
panel’s 17 members include representatives from fund companies,
an exchange, off-exchange trading venues, dealers and academia.

May 7, 2015

BATS seeks to change how U.S. stock market data systems are run

NEW YORK (Reuters) – BATS Global Markets is seeking changes in the governance of data processors central to the U.S. stock market, in order to give brokers and institutional investors a say in their operation for the first time, the head of the exchange operator said on Thursday.

The Securities Information Processors, or SIPs, disseminate stock quotations and last sale prices from all 11 U.S. stock exchanges and around 40 alternative trading venues to brokers and fund managers, which must buy the data to show they obtained the best possible prices for their clients. But the exchanges and an industry regulator make all the decisions on how the SIPs are run and how much the data is worth.

May 5, 2015

Wall Street group backs BATS exchange’s U.S. market reform proposal

NEW YORK (Reuters) – A Wall Street trade group on Tuesday
threw its support behind a proposal for regulatory reform of the
U.S. stock market that exchange operator BATS Global Markets
suggested earlier this year, including slashing exchange fees.

The proposal would reduce complexity while making the
markets more transparent and fair, the Securities Industry and
Financial Markets Association (SIFMA), said in a letter to the
U.S. Securities and Exchange Commission.

Apr 30, 2015

Global bank regulators call for more risk controls around algorithmic trading

NEW YORK (Reuters) – Banks need to put in place more stringent standards around algorithmic trading to help reduce risks to the financial system as trading becomes more electronic and increasingly complex, a group made up of global regulators said on Thursday.

Most trading firms are highly automated and use pre-programmed instructions, known as algorithmic trading strategies, to make lightning-fast decisions on which securities to buy and sell, with little human intervention. Banks regularly use algorithmic trading strategies and have high-frequency trading firms as clients.

Apr 30, 2015

Global bank regulators call for more risk controls around algo trading

NEW YORK (Reuters) – Banks need to put in place more stringent standards around algorithmic trading to help reduce risks to the financial system as trading becomes more electronic and increasingly complex, a group made up of global regulators said on Thursday.

Most trading firms are highly automated and use pre-programmed instructions, known as algorithmic trading strategies, to make lightning-fast decisions on which securities to buy and sell, with little human intervention. Banks regularly use algorithmic trading strategies and have high-frequency trading firms as clients.

Apr 27, 2015

Analysis: SEC’s stock market reform club locks out retail brokers

NEW YORK (Reuters) – The U.S. Securities and Exchange
Commission is convening a group of financial industry veterans
for the first time next month to consider stock market reforms,
but one group will be conspicuously absent: retail brokerages.

The SEC’s 17-member Market Structure Advisory Committee
includes representatives of fund companies, an exchange,
off-exchange trading venues, dealers, and academia, among
others. The group, which meets four times a year, will review
old rules, and advise the SEC on a range of new regulations
designed to make sure the market is as stable and fair as
possible.

Apr 26, 2015

SEC’s stock market reform club locks out retail brokers

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission is convening a group of financial industry veterans for the first time next month to consider stock market reforms, but one group will be conspicuously absent: retail brokerages.

The SEC’s 17-member Market Structure Advisory Committee includes representatives of fund companies, an exchange, off-exchange trading venues, dealers, and academia, among others. The group, which meets four times a year, will review old rules, and advise the SEC on a range of new regulations designed to make sure the market is as stable and fair as possible.

Apr 23, 2015

Nasdaq to settle Facebook IPO lawsuit for $26.5 million

NEW YORK (Reuters) – In a first for a U.S. stock exchange, Nasdaq OMX Group on Thursday agreed to pay $26.5 million to settle a class-action lawsuit involving its bungling of Facebook Inc’s $16 billion initial public offering, the plaintiffs’ lawyers said.

The lawsuit said Nasdaq violated federal and state laws by not disclosing technology weaknesses in its IPO systems and failing to properly design and test them for the Facebook offering.

Apr 23, 2015

Nasdaq sets aside $31 million for ongoing Facebook IPO claims

NEW YORK (Reuters) – Nasdaq OMX Group said on
Thursday it set aside $31 million for ongoing litigation arising
from the bungled $16 billion initial public offering of Facebook
Inc on its U.S. stock exchange in May 2012.

The reserve is intended to cover the estimated amount of a
settlement of class-action litigation initiated on behalf of
investors in Facebook common stock on the date of its IPO, the
company said in a filing related to its financial results.