CFTC’s Issuance of Foreign Boards of Trade Permits
Elise Fleischaker
The CFTC announced on October 31st, 2016 that they issued Orders of Registration to the following Foreign Boards of Trade (FBOT): Eurex CME Europe Limited ICE Futures Europe The London Metal Exchange London Stock Exchange We congratulate these exchanges on their newly acquired Orders of Registration. These Orders of Registration will allow FBOT members and other participants located in the U.S. direct access to the order entry and matching engine for these five exchanges. The CFTC issued these Orders in
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Impact: Navigating Regulation and What Comes Next, Part 3
Elise Fleischaker
At FIA Expo 2016, JLN spoke with a variety of participants in today’s markets about the ongoing effects of regulation and what those mean for the future of their businesses. In Part 3 of our three-part series, Matt Rees, chief relationship officer at R.J. O’Brien; Justin Llewellyn-Jones, COO of Fidessa; Geoff Sharp, managing director and head of sales at Eris Exchange; David Widerhorn, CEO of Neurensic; and Alex Lamb, head of business development Americas and head of marketing with Technancial,
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Daily News: October 27, 2016
Elise Fleischaker
US News IBM CEO: Watson will reach a billion consumers next year CME Disciplinary Notices Aardvark Trading LLC An automated system operated be Aardvark LLC did not operate as intended,causing it to execute 17,000 contract in the Eurodollar complex. Violating rules 400-402 in the Business Conduct Committee's (BCC) jurisdiction and CME ATS code rule 432q and 432w. CME fined Aardvark 205,000.00 and also fined 40,000.00 for CBOT rule 534 washed trades. Aardvark Trading LLC - CBOT Stuart Madden Paul Madden Henry
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‘Siri, catch market cheats’: Wall Street watchdogs turn to A.I.
Elise Fleischaker
Source: Reuters on October 25, 2016 Artificial intelligence programs have beaten chess masters and TV quiz show champions. Next up: stock market cheats. Two exchange operators have announced plans to launch artificial intelligence tools for market surveillance in the coming months and officials at a Wall Street regulator tell Reuters they are not far behind. Executives are hoping computers with humanoid wit can help mere mortals catch misbehavior more quickly. The software could, for instance, scrub chat-room messages to detect dubious bragging
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Start-up launches cloud-based AI RegTech surveillance tool
Elise Fleischaker
Source: The Trade News on October 20th, 2016 Surveillance tool identifies complex patterns in trading behaviour across multiple markets using cloud and artificial intelligence technology. Neurensic has announced the launch of the trading industry’s first compliance tool that is powered by a cloud-based machine learning architecture. The FinTech start-up – based in Chicago – explained that the SCORE surveillance platform is capable of identifying complex patterns in trading behaviour on a vast scale across multiple markets. To read the full story on
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How Spoofing Works & Why It is Illegal
Elise Fleischaker
The law of supply and demand is taught in every economics class. My children learned it in high school. It is simple to understand; yet it isn’t something we think about often. We don’t think about how it applies to our stock and commodity markets. The law of supply and demand is a theory that states that when something is in demand, and supply is lower than demand, then the price will rise. Conversely, when there is more supply than
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Accused U.K. flash-crash trader loses extradition fight, will appear in Chicago for trial
Elise Fleischaker
Becky Yerak Reporter, Chicago Tribune   Accused "flash crash" trader Navinder Singh Sarao lost his latest round to fight extradition and will be sent from the U.K. to Chicago to face federal charges that he helped trigger a 2010 tumble in stock markets. A U.K. judge on Friday refused Sarao's application to appeal his extradition, a court spokesman said. A grand jury in Chicago indicted Sarao in 2015, alleging manipulation on the Chicago Mercantile Exchange. The charges against Sarao include wire fraud,
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Trading Firms Beware: Those That House Spoofers Can Be Held Strictly Liable
Elise Fleischaker
In US tort law there is a rigid legal doctrine known as 'strict liability' which is frequently used by consumers to hold manufacturers of defective products legally responsible for any harm caused by their products.  Consumers who bought and used the product and were injured are able to file suit against the manufacturer and seek damages without having to prove that the manufacturer had reckless, negligent, or bad faith intent in producing the product (hence, the rigidity of the doctrine).
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MiFID II best execution is not achievable, says FinTech experts
Elise Fleischaker
Panellists agree that perfect best execution can’t be achieved and describe it as a ‘relative term’. By Hayley McDowell hayley.mcdowell@strategic-i.com October 06, 2016 11:10 AM GMT Demonstrating perfect best execution under MiFID II regulation cannot be achieved, according to industry experts from the financial technology (FinTech) world. A panel of FinTech veterans at The TRADE’s MiFID II: Best Execution in Paris this week told delegates that market participants may not ever reach best execution. Mark Ford, principal consultant at LiquidMetrix,
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A $700 million lure for finance biz whistleblowers
Elise Fleischaker
—and hundreds are grabbing for it... Anyone brooding about illegal practices in the financial markets now has a $700 million incentive from the federal government to speak up. And Chicagoans are responding to the Securities and Exchange Commission and Commodity Futures Trading Commission call for whistleblowers, say lawyers who work with them. So are firms anxious about the tattling programs created in 2010 by the Dodd-Frank Wall Street Reform Act. Some 350 Illinois tipsters dialed up the SEC in the
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