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Aug 29, 2014

Exclusive: U.S. options exchanges craft rules to fend off turmoil

NEW YORK (Reuters) – A year after Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) bungled a software upgrade and lost tens of millions of dollars from unintended trades, the 12 U.S. stock options exchanges have crafted new rules for dealing with erroneous transactions, according to draft documents seen by Reuters.

Under the proposed rules, unintended trades placed by professional traders will usually have their prices adjusted to levels as close to their fair market value as possible, while wrong trades by retail customers will be mainly be undone, five sources with knowledge of the matter told Reuters.

Aug 29, 2014

US options exchanges craft rules to fend off turmoil

NEW YORK, Aug 29 (Reuters) – A year after Goldman Sachs
bungled a software upgrade and lost tens of millions of
dollars from unintended trades, the 12 U.S. stock options
exchanges have crafted new rules for dealing with erroneous
transactions, according to draft documents seen by Reuters.

Under the proposed rules, unintended trades placed by
professional traders will usually have their prices adjusted to
levels as close to their fair market value as possible, while
wrong trades by retail customers will be mainly be undone, five
sources with knowledge of the matter told Reuters.

Aug 5, 2014

Citadel fined $800,000 by U.S. regulators for trading violations

NEW YORK, Aug 5 (Reuters) – A unit of hedge fund Citadel LLC
was fined $800,000 by U.S. regulators in June for failing to
prevent erroneous orders from being sent to several stock
exchanges over a nearly three-year period.

Citadel failed to properly establish, maintain and enforce a
supervisory system to check the accuracy of orders and to reject
some orders that were mispriced or duplicated between March 18,
2010, and Jan. 8, 2013, the Financial Industry Regulatory
Authority said in a June 12 letter viewed by Reuters on Tuesday.

Jul 30, 2014

Exclusive: Upstart trading venue IEX may prompt U.S. market rule change

NEW YORK (Reuters) – U.S regulators may relax rules that require the fastest possible execution of securities trades, potentially helping upstart trading venue IEX Group’s plans to become a full-fledged stock exchange.

IEX, described in author Michael Lewis’ book “Flash Boys: A Wall Street Revolt” earlier this year as a place for investors to place buy and sell orders without worrying that they are being “front-run” by other traders whose order transmission speeds are faster than theirs.

Jul 30, 2014

Upstart trading venue IEX may prompt US market rule change

NEW YORK, July 30 (Reuters) – U.S regulators may relax rules
that require the fastest possible execution of securities
trades, potentially helping upstart trading venue IEX Group’s
plans to become a full-fledged stock exchange.

IEX, described in author Michael Lewis’ book “Flash Boys: A
Wall Street Revolt” earlier this year as a place for investors
to place buy and sell orders without worrying that they are
being “front-run” by other traders whose order transmission
speeds are faster than theirs.

Jul 25, 2014

Citigroup unit to pay $5 million to settle U.S. SEC charges

July 25 (Reuters) – A private trading venue owned by
Citigroup will pay a $5 million penalty to settle charges
that it failed to protect customers’ data, marking the latest
case in a crackdown by U.S. regulators over alleged market rule
violations.

The Securities and Exchange Commission said the unit,
LavaFlow Inc., is settling the civil case without admitting or
denying the charges.

Jul 17, 2014

Exclusive: SEC targets 10 firms in high frequency trading probe – SEC document

NEW YORK (Reuters) – The U.S. Securities and Exchange Commission has been seeking information on 10 registered broker dealers as part of an ongoing investigation into high-frequency trading strategies, according to an internal SEC document reviewed by Reuters.

The regulator told its staff in late March that it was interested in seeing any tips, complaints, or referrals that they receive concerning the brokers and high frequency trading.

Jul 17, 2014

US SEC targets 10 firms in high frequency trading probe – SEC document

NEW YORK, July 17 (Reuters) – The U.S. Securities and
Exchange Commission has been seeking information on 10
registered broker dealers as part of an ongoing investigation
into high-frequency trading strategies, according to an internal
SEC document reviewed by Reuters.

The regulator told its staff in late March that it was
interested in seeing any tips, complaints, or referrals that
they receive concerning the brokers and high frequency trading.

Jul 17, 2014

U.S. SEC scuttles Nasdaq options rebate plan

NEW YORK, July 17 (Reuters) – The U.S. Securities and
Exchange Commission has denied a plan by Nasdaq OMX Group Inc
to offer rebates to some of the biggest customers of
one of its options exchanges, based on the amount of trading
they do across all three of Nasdaq’s options markets.

Nasdaq’s plan would have run afoul of rules stating that an
exchange’s fees cannot be unfairly discriminatory or hinder
competition, the SEC said in an order posted on its website on
Thursday. (1.usa.gov/UcwDvi)

Jul 1, 2014

NYSE to run software tests for trading firms ahead of Alibaba IPO

NEW YORK (Reuters) – The New York Stock Exchange said it will hold a test run of Alibaba Group Holding’s (IPO-ALIB.N: Quote, Profile, Research, Stock Buzz) highly anticipated market debut, reflecting the securities industry’s focus on risk controls after a raft of technical snafus in recent years.

NYSE, owned by Intercontinental Exchange Inc (ICE.N: Quote, Profile, Research, Stock Buzz), said in a note to traders on Tuesday it would allow firms to test their trading software ahead of the initial public offering of Alibaba on July 12 for a listing on the New York Stock Exchange.