John's Feed
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 26, 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 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.

Apr 23, 2015

Nasdaq hikes dividend, cuts costs as profits top views

NEW YORK (Reuters) – Transatlantic exchange operator Nasdaq OMX Group (NDAQ.O: Quote, Profile, Research, Stock Buzz) on Thursday said it raised its dividend 67 percent and took substantial restructuring charges to combat foreign exchange headwinds as its profits topped expectations.

Nasdaq said its board authorized a hike in the company’s dividend to 25 cents per share from 15 cents per share.

Apr 22, 2015

Analysis – ‘Flash crash’ trader’s alleged fraud a common market occurrence

NEW YORK (Reuters) – The market manipulation case against the British day trader U.S. authorities say helped spur the May 2010 “flash crash” may be the most high-profile to date, but the type of activity he is accused of is actually quite common, market participants say.

    Navinder Singh Sarao was charged on Tuesday with allegedly using a computer trading program to generate large sell orders that pushed down prices. He then cancelled those trades and bought the contracts at the lower prices, reaping a roughly $40 million (26.58 million pound) profit on his trading, U.S. authorities said.

Apr 22, 2015

‘Flash crash’ trader’s alleged fraud a common market occurrence

NEW YORK (Reuters) – The market manipulation case against the British day trader U.S. authorities say helped spur the May 2010 “flash crash” may be the most high-profile to date, but the type of activity he is accused of is actually quite common, market participants say.

Navinder Singh Sarao was charged on Tuesday with allegedly using a computer trading program to generate large sell orders that pushed down prices. He then canceled those trades and bought the contracts at the lower prices, reaping a roughly $40 million profit on his trading, U.S. authorities said.

Apr 1, 2015

Kelly Maier joins upstart electronic debt market TruMid

NEW YORK (Reuters) – TruMid Financial said on Wednesday that credit specialist Kelly Maier is joining the new electronic corporate bond trading platform that is due to go live later this month.

Maier was recently a Partner at Achievement Asset Management, a multibillion-dollar credit hedge fund spun off last September from Chicago-based trading firm Peak6 Investments. Prior to that, he ran U.S. high-yield trading for Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) and was a high-yield trader at Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz).

Mar 31, 2015

NYSE Arca exchange glitch hampers trading in popular ETFs

NEW YORK (Reuters) – Intercontinental Exchange Inc’s (ICE.N: Quote, Profile, Research, Stock Buzz) NYSE Arca had a technical glitch on Tuesday that resulted in some of the most popular exchange-traded funds being temporarily unavailable for trading and some investors paying more for stocks than they otherwise may have.

ETFs have exploded in popularity over the past decade, making up 25-30 percent of all trading on U.S. exchanges in recent years, according to a recent Credit Suisse report. The investment vehicles offer exposure to wide ranges of securities, similar to mutual funds, but generally have lower fees and can be traded anytime the market is open, like single stocks.

Mar 27, 2015

Citadel Securities to close Apogee ‘dark pool’: sources

NEW YORK (Reuters) – Citadel Securities, a top market maker in U.S. stocks and listed options, plans to shutter its Apogee “dark pool” to focus on another of its off-exchange stock trading venues called Citadel Connect, according to people with direct knowledge of the matter.

Apogee ranked 18th out of 37 U.S. dark pools – which like exchanges, match buyers and sellers of stocks, but without disclosing pre-trade information so that trading interests remain hidden – by volume in the latest statistics from the Financial Industry Regulatory Authority.