CFTC still active in pursuing market manipulation
Elise Fleischaker
Expect to see more going forward in 2016. All trading firms need to up their game in market surveillance of their staff. Around the world the regulators are stepping in like referees in a game requiring fairness. http://www.wisconsinagconnection.com/story-national.php?Id=2735&yr=2015
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Spoofing in the news….
Elise Fleischaker
Every trading firm has compliance officers who are equipped with tools from last decade. Yet spoofing and market manipulation is still happening. The problem is that spoofing may disguise itself. It may appear to be regular market making activity. It could be multiple different traders at a large brokerage firm who happen to hit the market at the same time. The tools need to learn what is and what isn't really spoofing. They have to look into the market activity,
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Swiss Regulator bans 6 traders for Currencies and Metals market manipulation
Elise Fleischaker
They allegedly shared confidential client information and were engaged in front running. Exert from Reuters Six former UBS managers and traders have been banned for up to five years for alleged manipulation of foreign exchange and precious metals markets in the first sanctions handed out by authorities in a global investigation. Swiss financial watchdog FINMA said on Thursday the six, who were not named, were directly responsible for serious breaches of regulation and had been banned for between one and
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Congratulations! You have a new baby idea. You are now officially an Innovator
Elise Fleischaker
Congratulations! You have a new baby idea. You are now officially an Innovator. Now what do you do? Here are a few of my favorite next steps for innovators: Start sharing the idea with co-workers. Chances are they will help you grow the innovation to maturity. Recognize that time spend in discussion will result in support when you need it most. Don’t let someone criticizing your baby to get you down. Keep nurturing the idea. Everyone is a critic and
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FIA is has a webinar on Regulation AT today
Elise Fleischaker
December 16 at 2:30 PM - 3:45 PM CST I am very interesting in gaining more of an understanding of Regulation AT (Algorithmic Trading).  In the past few years it has become more and more apparent that algo development, risk departments, trade mitigation teams, and operations needs to step up their game. Investors  running algos should be comfortable that their algos will cause no illicit market manipulation too. FIA says "Register now for this complimentary webinar!"
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Eurex is putting spoofing, market manipulation, and algos on notice
Elise Fleischaker
New rules at Eurex represent the dawn of a new trade surveillance requirements.  See Eurex Circular 217/15. These changes are clearly a response to well published cases of global market manipulation. Now the surveillance teams at broker dealers, non-clearing members, and trading firms need to step up their game to not only watch what is going on during trading, but also watch what is being done to test algos. Algos shouldn't only be tested for their trading effectiveness, but also
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Innovation: Responding to ideas from your team
Elise Fleischaker
For a long time innovation has been a passion. Especially since my new firm specializes in innovation within Machine Learning and Fintech.  What causes innovation? What kills innovation? Last week I had cause to chat with some former colleagues about their innovation initiatives. Our discussion drifted to the responses that differing ideas were receiving. Innovation can be accelerated or decelerated by the questions and comments at the outset. Consider the following two responses to a new idea: That’s a good
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Broadridge survey expects increased regulatory pressure though 2020 for global capital markets
Elise Fleischaker
Nearly two-thirds of equity analysts (61 percent) who cover global capital markets institutions expect regulatory pressures on banks to intensify further through 2020, with potential new capital rules, informally known as “Basel IV,” likely to have the greatest effect on their operations, according to a global survey of nearly 150 buy-side and sell-side analysts. Read the full posting on Finextra. "A key challenge facing these institutions is how to streamline the technology and operation..." Machine learning is a strong technology
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Another market manipulation case. This time in Europe
Elise Fleischaker
Reuters reports: Dec 8 France's financial markets regulator has fined U.S. high-frequency trading firm Virtu Financial and European exchange Euronext 5 million euros ($5 million) each in a market manipulation case dating back to 2009. The Autorite des Marches Financiers (AMF) said Virtu Financial Europe had manipulated the market and ignored its rules, while Euronext had failed to meet its obligation to operate "with neutrality and impartiality".   This one involves market manipulation on Euronext. I find it interesting that
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