Futures Trading, STEM, and the Boy Scouts
Neurensic
Science Technology Engineering Math (STEM) recently was highlighted in Market Voice Magazine with a program involving the Chicago area Boy Scouts.  There are a few points that I want to highlight about both Scouting and STEM. Boy Scouts has a program called Venturing, or Venture Crews. Venture Scouts are young men and women ages 14 to 21. STEM isn’t for men only. We need diversity of all types in STEM. STEM isn’t only “T”. The Science, Engineering, and Math are important
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Of Broker Dealers, Machine Learning, Capital Utilization, and Profitability
Neurensic
Over the past couple of years I have had the good fortune to discuss the need for improved understand of profitability and capital utilization in broker dealers. Frustrations abound. Discussions on the need to find the right clients to meet the balance sheet utilization mix meander with no clear end in sight. Investment managers are moving their books of business, not based upon desire, but based upon the BD needing to achieve the correct balance sheet mix. BDs are looking
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Trade Spoofing: Crossing International Jurisdictions
Neurensic
On March 4, 2016 Japan’s Securities and Exchange Surveillance Commission filed a recommendation against Blue Sky Capital Management for market manipulation. The complaint describes a classic case of #Spoofing. Reading the text of the complaint you will find out the following interesting facts: The trading happened in Japan. The complaint is against a company located in Australia. The accounts involved are papered in the  Cayman Islands International Jurisdictions Great interest has been generated over the past year in market manipulation,
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Who Needs Regulators when you have Fair Market Champions?
Neurensic
Erik Hunsader, the founder of Nanex, has been a frequent watcher of the markets. His twitter feed often has screenshots of suspected spoofing and market manipulation. Reuters declares him as “an outspoken critic of high-frequency traders.” Yet if you follow him on twitter you will see that he isn’t really outspoken. Rather he seems to be more of a fair market champion. Trading Industry Compliance Structure Countries have regulators to oversee their country markets. Exchanges, working as Self Regulatory Organizations,
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Agile Thoughts on Team Dynamics
Jezza Sutton
I was thinking just the other day about some of my Agile teams and in particular a comment about change and reduced velocity. Which reminded me of some of the great training I have received from the Boy Scouts of America in their Wood Badge course. We forget that a team is dynamic and goes through phases and transitions. I get very used to my wonderful team that churned out 45 story points every sprint with almost monotonous regularity -
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Industry Help Needed: Data Scientists
Neurensic
In looking at compliance officers (from the buy side, sell side, exchanges, and regulators) I saw only one person with a background in data science, machine learning, decision science, statistics or other data analysis discipline. Granted, my search was wholly unscientific. My college professors in Decision Science at Indiana University would give me poor grades. I simply looked through the background of three dozen LinkedIn compliance officers in my own personal network. Backgrounds observed in my research showed people who
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Global Regulators Looking Past the CCO
Neurensic
1) Canadian Regulator: you “ought to have known” your traders where spoofing. 2) NY: Broker Dealer removes 2 from their supervisory role. 3) CFTC: Adds new Regulation Algorithmic Trading with new role of “AT Person” 4) FCA: Adds new new watch on senior managers 5) FINRA: Supervisor barred from supervising after case of market manipulation   Globally, my peers in the industry seem to all agree that the liability of managers is greatly increasing. Consider the following news: The Canadian regulator’s
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Algorithmic Trading, Agile, and Continuous Delivery
Neurensic
The Agile development methodology and Continuous Delivery has delivered on many promises. We have all seen Faster development cycles Faster IT reaction times Better prioritization of business objectives Easier balancing of technical and business objectives Regulations New regulations, for example the Regulation Algorithmic Trading by the CFTC,  have begun looking at accountability. And it isn’t a strictly American issue. Reuters reported that the FCA wants to see greater accountability too. This accountability isn’t limited to who is executing the trades anymore. The
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Trading ethically is the responsibility of more than the CCO
Neurensic
In the news today there is a well written article on The Street regarding Spoofing. "First, broker-dealers need to send a clear message to their employees that compliance is mandatory. Next,technology can and should play a central role in ensuring that rules are followed, but creating a healthy culture goes beyond managing the tools that employees use. Firms must address instances of spoofing directly, avoiding the temptation to sweep wrongdoing under the carpet. Finally, broker-dealers can periodically refresh employees on illegitimate
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U.S., UK likely to charge multiple banks in Libor rigging: WSJ
Neurensic
U.S., UK likely to charge multiple banks in Libor rigging: WSJ Here we go again....
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